The Austria-headquartered Bajaj Mobility AG (which renamed from Pierer Mobility in January) has announced that subsidiary KTM AG has gotten a new loan from international lenders to replace the money it had borrowed from Bajaj Auto International Holdings B.V.

BAIH is Bajaj Auto’s Netherland’s based investment subsidiary.

KTM has received a loan of €550 million [₹5,904.8 crore] from a group of international banks that will be used to pay back an earlier €450 million loan.

The new lenders include DBS Bank, J.P. Morgan S.E., HSBC and MUFG Bank. The new loan is unsecured, has a five-year term, and bears interest in the low to mid-single-digit percentage range, the company has said.

Bajaj’s Netherlands investments subsidiary, Bajaj Auto International Holdings BV was affected last year by KTM’s restructuring.

On 28 November 2024, KTM AG and its subsidiaries had initiated a self-administrative restructuring due to crippling debt and working capital shortages. A restructuring plan, approved by creditors on 25 February 2025, mandated a 30 per cent cash settlement (around €600 million) to creditors.

To meet this obligation and to enable KTM AG to resume normal operations, Bajaj Auto had, through BAIH BV, infused a crucial €800 million in the form of debt to Pierer Mobility.

The new loan fully replaces a €450 million financing granted by BAIH in 2025 as part of the restructuring process. KTM AG’s operating performance has shown signs of improvement, the company has said. Global retail sales increased by around 60 percent compared to H1 2025, and inventory levels were reduced by over 100,000 units.

KTM CEO Gottfried Neumeister, said: “The successful refinancing demonstrates the clear confidence that international banks have in KTM AG’s future. An unsecured loan of this magnitude is an exceptionally strong signal and provides us with stability, flexibility, and momentum for the years ahead.”