Bajaj Auto Confirms KTM AG Pre-Pays All Dues Under Facility Agreement

Bajaj Auto Ltd, through its wholly owned subsidiary Bajaj Auto International Holdings BV (BAIH BV), has disclosed that KTM AG has pre-paid all dues under the facility agreement. This repayment follows a series of financial support measures extended by Bajaj Auto to KTM AG, including loan facilities and convertible bond subscriptions, aimed at stabilizing the Austrian motorcycle manufacturer during its restructuring phase.

The pre-payment signals KTM’s strengthened financial position and reflects the success of Bajaj Auto’s intervention in safeguarding its strategic investment. Bajaj Auto, which holds a significant stake in KTM AG, has been instrumental in providing liquidity support during KTM’s insolvency challenges.

This development not only secures Bajaj Auto’s exposure but also reinforces the long-term collaboration between the two companies, ensuring continued innovation and market expansion in the global motorcycle industry.

Key Highlights

• Issuer: Bajaj Auto International Holdings BV (BAIH BV)
• Counterparty: KTM AG (Austria)
• Transaction: Full pre-payment of dues under facility agreement

Background:

• Loan facility of €450 million (~₹4,365 crore) provided by BAIH BV
• Convertible bonds worth €150 million (~₹1,455 crore) subscribed by Bajaj Auto
• Total support package exceeded €800 million (~₹7,800 crore)

Impact:

• Strengthens KTM’s financial stability
• Secures Bajaj Auto’s strategic investment
• Reinforces global motorcycle partnership

Sources: BSE Filing, Business Upturn, Insolvency Tracker