Bajaj Auto Subsidiary Terminates Loan Agreements After Repaying Euro 80 Million in Dues
Bajaj Auto Limited has announced the termination of several loan agreements involving its subsidiaries following significant prepayments of outstanding corporate dues. Bajaj Auto International Holdings BV (BAIH BV), a wholly owned subsidiary of Bajaj Auto Limited, successfully repaid outstanding dues aggregating to Euro 80 million to JP Morgan Chase Bank N.A. and DBS Bank Ltd., leading to the termination of the loan agreements with these two financial institutions on May 18, 2026.The termination marks a key financial update related to the corporate restructuring activities of the group. The repayment was facilitated by Bajaj Auto International Holdings AG (BAIH AG), a step-down wholly owned subsidiary of Bajaj Auto Limited, which prepaid all outstanding dues to BAIH BV under the Shareholder Loan structure.
The overall financial activity concerning the group's loans includes multiple agreements. BAIH BV had previously availed unsecured bank loans from multiple lenders, including JP Morgan Chase Bank N.A., DBS Bank Ltd., Citigroup Global Markets Asia Ltd., and Standard Chartered Bank, for funding its investment activities. Separately, a Shareholder Loan of Euro 50 million was executed between BAIH BV and BAIH AG, effective from November 18, 2025, aimed at the restructuring process of KTM AG and its relevant subsidiaries.
The repayment of funds resulted in the immediate termination of the loan agreements with JP Morgan Chase Bank N.A. and DBS Bank Ltd. on May 18, 2026.
Summary of Loan Agreement Termination
The following table details the parties and terms involved in the agreements whose termination was reported:| Agreement Type | Parties Involved | Nature of Agreement | Repayment/Termination Details |
|---|---|---|---|
| Shareholder Loan | Lender: BAIH BV; Borrower: BAIH AG | Shareholder loan of Euro 50 million for three years. | Terminated following BAIH AG's prepayment of all outstanding dues to BAIH BV. |
| Bank Loans | Lenders: JP Morgan Chase Bank N.A., DBS Bank Ltd. | Unsecured loan towards funding investment activities for one year. | BAIH BV fully repaid outstanding dues aggregating to Euro 80 million, resulting in termination on May 18, 2026. |
This series of repayments and subsequent terminations underscores a systematic restructuring process within the company's international holdings.
BAJAJ-AUTO Stock Price Movement
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