KTM AG has obtained a 550 million euro unsecured loan from an international banking group to repay previous debt and support operations. The funding, arranged after a bailout from Bajaj last year, marks the end of the company's refinancing efforts. KTM plans to focus on motorcycle production following recent sales improvements and restructuring.
KTM AG, the Austrian motorcycle manufacturer, has finalized a new financial arrangement amid its ongoing recovery from a financial crisis. Last year, India-based Bajaj injected hundreds of millions of euros to stabilize the company, but additional funds were needed to fully resolve the issues.
European motorcycle publications report that KTM has secured a 550 million euro loan from a consortium including J.P. Morgan, DBS, HSBC, and MUFG. This five-year unsecured loan carries a variable interest rate in the low-to-mid single-digit percentage range. The primary purpose is to repay the 450 million euros previously borrowed from Bajaj, while also refinancing existing debt and providing extra capital for ongoing operations. Dividend payouts to shareholders will be restricted during the repayment period.
This deal is described as the final chapter in KTM's refinancing saga, allowing the company to shift attention to core activities like building bikes. Sales reportedly improved significantly in the second half of 2025, with new models being introduced to global markets in a cautious but consistent manner over recent months. As part of broader restructuring, KTM has implemented workforce reductions in Europe and anticipates moving considerable production to Asia in the long term.
