Bajaj Auto Subsidiary BAIH BV Completes €480M Loan Prepayment and Banking Restructure

Bajaj Auto 's wholly owned subsidiary BAIH BV has completed a major financial restructuring by prepaying €480 million in outstanding loans and terminating agreements with two international banks, according to a regulatory filing.

Complete Loan Settlement and Contract Terminations

BAIH BV has fully settled its outstanding dues with two major international banks, resulting in the termination of their loan agreements:

Bank:	Action Taken	Status
Citigroup Global Markets Asia Ltd.:	Full prepayment	Agreement terminated
Standard Chartered Bank:	Full prepayment	Agreement terminated

Partial Prepayments to Remaining Banks

The subsidiary has also made substantial partial prepayments to its other banking partners as part of the comprehensive restructuring:

Bank:	Prepayment Amount	Status
JP Morgan Chase Bank N.A.:	€215.00 million	Agreement continues
DBS Bank Ltd.:	€54.00 million	Agreement continues

Original Loan Structure Details

The original loan arrangements were established with four banks, totaling €666.00 million for BAIH BV's investment activities. The unsecured loans were structured with a one-year term and executed across multiple dates in the previous arrangement.

Strategic Financial Restructuring Impact

The €480.00 million prepayment represents a significant deleveraging move by the subsidiary, demonstrating strong cash flow management and strategic debt reduction. The selective termination of banking relationships while maintaining partnerships with JP Morgan and DBS through partial prepayments indicates a focused approach to optimizing the subsidiary's financial structure.

This restructuring positions BAIH BV with reduced debt obligations while preserving key banking relationships for future investment activities. The company has disclosed this information in compliance with regulatory requirements.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.69%	-0.68%	-7.94%	+2.37%	+11.36%	+151.10%

Bajaj Auto Limited has informed stock exchanges about the credit rating updates for its wholly owned subsidiary, Bajaj Auto Credit Limited (BACL). The disclosure was made on 07 March 2026 in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

ICRA Limited assigned and reaffirmed [ICRA]AAA (Stable) ratings to multiple financial instruments of Bajaj Auto Credit Limited through its letter dated 06 March 2026. The ratings demonstrate the subsidiary's strong creditworthiness and financial stability across different categories of debt instruments.

Sr. No.	Bank Facility	Rating	Amount (Rs. in crore)
1.	Non-convertible debentures	[ICRA]AAA (Stable); reaffirmed	2,000
2.	Subordinated bonds/debt	[ICRA]AAA (Stable); reaffirmed	750
3.	Long-term bank lines	[ICRA]AAA (Stable); assigned	5,000

Rating Significance

The [ICRA]AAA rating represents the highest credit quality with lowest credit risk. The stable outlook indicates that the rating is unlikely to change in the near term. While the ratings for non-convertible debentures and subordinated bonds/debt were reaffirmed, the long-term bank lines received a fresh assignment of the AAA rating.

Regulatory Compliance

Bajaj Auto Limited received the rating information from ICRA on 06 March 2026 at approximately 5:45 P.M. (IST). The company promptly disclosed this material information to both BSE Limited and National Stock Exchange of India Limited the following day. The disclosure has also been made available on the company's website under the investors section as required by listing regulations.

Financial Impact

The total amount covered under these ratings stands at Rs. 7,750 crore across the three categories of financial instruments. The AAA ratings with stable outlook should facilitate favorable borrowing terms for Bajaj Auto Credit Limited and support its business operations in the automotive financing sector.