Bajaj Auto Flags €550m KTM AG Refinancing After Banking Consortium Loan Agreement

On February 27 2026 at around 02:15 AM (IST), Bajaj Auto Limited disclosed that its step-down subsidiary had secured fresh external funding, following an ad-hoc announcement released by Bajaj Mobility AG on February 26, 2026 (21:46 CET/CEST) under Article 17 of Regulation (EU) No 596/2014 (MAR).

The filing, made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, references a refinancing transaction at KTM AG, a wholly owned subsidiary of Bajaj Mobility AG and therefore a step-down subsidiary of Bajaj Auto in Austria.

Refinancing Loan Replaces €450m Intra-Group Facility

According to the MAR disclosure transmitted via EQS News, KTM AG has entered into a refinancing agreement with an international banking consortium totalling €550 million.

The proceeds will refinance an existing €450 million loan extended in May 2025 by Bajaj Auto International Holdings B.V. as part of last year’s restructuring measures. That intra-group facility financed the restructuring plan quota; it is now being replaced with third-party bank funding.

The newly executed loan carries a five-year tenor. It is unsecured and priced in the low to mid-single-digit percentage range. During the term, KTM AG will be subject to customary market-standard covenants, including restrictions on dividend distributions.

With the execution of this agreement, the refinancing package linked to KTM AG’s restructuring is described as complete.

Technical note: A refinancing replaces existing debt with new borrowings, typically to alter maturity profile, pricing structure or lender composition. In this case, internal shareholder funding is being substituted with syndicated bank debt, potentially diversifying funding sources and formalising covenant structures under market-standard documentation.

Bajaj Auto Stock Market Snapshot

Share price of Bajaj Auto were trading at ₹9,988.00, down ₹122.00 or 1.21%, as of 11:26 AM IST on February 27, 2026. The stock opened at ₹10,072.50 and touched a low of ₹9,955.00 so far, against a previous close of ₹10,110.00.

The counter’s 52-week high stands at ₹10,187.00, while the 52-week low is ₹7,089.35. The price-to-earnings ratio is 31.46, according to exchange data.

Cross-Border Disclosure Under EU Market Abuse Regulation

The Austrian disclosure was issued as inside information pursuant to Article 17 of the EU Market Abuse Regulation (Regulation (EU) No 596/2014) and also referenced Art. 53 LR. The issuer stated it is solely responsible for the content of the announcement.

Bajaj Mobility AG’s shares are listed on the SIX Swiss Exchange and the Vienna Stock Exchange. The ISIN referenced in the disclosure is AT0000KTMJ02.

The Indian intimation confirms that the information will also be hosted on Bajaj Auto’s investor relations website in accordance with Regulation 30(8) of the SEBI LODR framework.

Conclusion

The €550 million refinancing shifts KTM AG’s debt profile from intra-group funding to syndicated external bank financing, extending maturity to five years and embedding market-standard restrictions. For Bajaj Auto, the transaction formalises the funding structure of its Austrian step-down subsidiary while concluding the restructuring-linked refinancing process disclosed in prior periods.

Source:

https://nsearchives.nseindia.com/corporate/lkwalimbe_bajajauto_co_in_27022026102654_SE_BMAG_KTM_AG_refinancing_loan_agreement_Signed.pdf