- KTM takes out an unsecured loan of 550 million euros
- The loan settles liabilities toward Bajaj Auto
- According to the company, all refinancing measures are now completed
The Austrian motorcycle manufacturer KTM, based in Mattighofen, has reached an important milestone in its restructuring process. As announced on Thursday evening by its parent company Bajaj Mobility, the company secured a loan of 550 million euros from a consortium of banks. The loan is a further step in the manufacturer’s financial restart.
Bajaj Auto provided 450 million euros in advance
The new loan serves a specific purpose: it replaces existing liabilities toward Bajaj Auto International Holdings. The Indian group had supported KTM financially during the insolvency proceedings and provided a total of 450 million euros. The funds were used both for the ongoing restructuring process and for meeting the agreed restructuring quota.
Five-year loan term
The new financing is an unsecured loan, meaning it is not backed by collateral such as real estate or machinery, with a term of five years. According to company statements, the interest rate is in the low to mid single-digit percentage range and reflects market-standard conditions. For KTM, this means that its dependence on Bajaj Auto as a direct financier is being replaced by traditional bank financing.
Refinancing completed according to KTM
With the signing of the loan agreement, KTM states that all refinancing measures have now been completed. The company is therefore operating on a stabilized capital base and can increasingly focus again on its core business. However, current statements do not provide details on how the strategic direction will look following the restructuring.
