New Delhi: KTM AG have secured a €550 million refinancing loan from an international banking consortium, marking the completion of its financial restructuring measures. The loan will be applied for refinancing the €450 million, provided by Bajaj Auto International Holdings B.V in May 2025, to refund KTM’s restructuring scheme.

The refinancing loan agreement has been granted by an international banking consortium and carries a total volume of €500 million euro. The loan is unsecured, has a 5-year term, and comes with 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 comes following an intense year for the KTM AG brand, which saw it file for insolvency after facing severe financial difficulties. In February 2025, the Austrian motorcycle manufacturer’s restructuring plan got approved, requiring it to pay 30 per cent of its total debt to about 2,500 creditors, which amounted to €548 million, by May 23rd, 2025.

Bajaj Auto came in to rescue the Austrian brand from insolvency, making for €450 million euro loan in May 2025, through their subsidiary Bajaj Auto International Holdings B.V.

After the financial crisis, Bajaj Auto moved from being a minority investor to taking complete control of KTM. This acquisition stopped the Pierer Group’s involvement in KTM and gaveBajaj 74.9 per cent stake in what was then Pierer Mobility AG and KTM AG. The takeover immediately led to a major corporate reorganisation. Pierer Mobility was officially renamed as Bajaj Mobility AG, and it is now the holding company for KTM, Husqvarna and GasGas brands.