KTM AG completes financial restructuring with 550 million euro loan

KTM AG has secured a 550 million euro (approximately Rs 5,883 crore) refinancing loan from an international banking consortium, marking the completion of its financial restructuring measures. The loan will be used to refinance the 450 million euros (approximately Rs 4,820 crore) provided by Bajaj Auto International Holdings B.V. in May 2025 to fund KTM’s restructuring plan.

1. 550 million euro loan granted by international banking consortium
2. Unsecured loan with 5-year term at low- to mid-single-digit interest rate
3. Pierer Mobility recently renamed as Bajaj Mobility AG as part of restructuring

KTM restructuring and loan details

Completes KTM AG’s refinancing measures following 2025 restructuring

The 550 million euro loan is unsecured, has a term of 5 years and bears interest in the low- to mid-single-digit percentage range. During the loan term, KTM AG will be subject to market-standard restrictions on dividend distributions.

The refinancing follows a tumultuous year for KTM AG, which filed for insolvency after facing severe financial difficulties. In February 2025, the Austrian motorcycle manufacturer’s restructuring plan was approved, requiring it to pay 30 percent of its total debt to 2,500 creditors, amounting to 548 million euros (approximately Rs 5,870 crore), by May 23, 2025. Bajaj Auto stepped in to rescue the Austrian brand from insolvency, providing a 450 million euro loan in May 2025 through its subsidiary Bajaj Auto International Holdings B.V.

Following the financial crisis, Bajaj Auto moved from being a minority investor to taking full control of KTM. This acquisition ended the Pierer Group’s involvement in KTM and gave Bajaj a 74.9 percent stake in what was then Pierer Mobility AG and KTM AG. The takeover triggered a major corporate reorganisation. Pierer Mobility AG was officially renamed Bajaj Mobility AG,  and it is now the holding company for the KTM, Husqvarna and GasGas brands.