European Investment Bank lends EUR 120 million to Austrian KTM AG

The European Investment Bank (EIB) is lending EUR 120 million to KTM AG, an Austrian motorcycle manufacturer. The financing of the EU bank will support KTM´s investments in research, development and innovation (RDI). The EIB loan is backed by a guarantee from the European Fund for Strategic Investments (EFSI). EFSI is an essential pillar of the Investment Plan for Europe – also known as the Juncker Plan – under which the EIB and the European Commission are working together as strategic partners and the EIB’s financing operations are boosting the competitiveness of the European economy.

In particular, KTM will use the fresh financing to strengthen RDI in the fields of electrical propulsion systems, cooperative intelligent transport systems and lightweight design. In addition, the EU support will go to RDI of advanced materials and technologies for motorcycles as well as to future urban mobility concepts. The investments will be carried out primarily in KTM´s R&D centre located in Mattighofen (Austria) in the period 2018-2020.

EIB Vice-President Andrew McDowell, who is responsible for operations in Austria at the Bank, underlined: “Research, development and innovation are key ingredients for ensuring sustainable growth and creating high-value jobs. For the EIB, this is a top priority. Therefore I am delighted to continue our excellent and constructive cooperation with KTM. The company is a leading European player in the high quality off-road and street-legal motorcycle segments and KTM is the leading global off-road brand. The new investments are crucial for KTM to keep its position as an innovation leader in the global motorcycle industry.”

Viktor Sigl, CFO of KTM AG: “Research and development is a top priority to us and represents a significant investment for the future of KTM’s growth strategy and its ongoing development. In EIB, KTM has found a long-standing and reliable partner to support these investments with the corresponding financing. KTM values this collaboration and the strong partnership.“

Commissioner for Transport Violeta Bulc said: "Road transport is at a cross-road and connected, cooperative, automated and autonomous driving will shape road mobility in the years to come, the way motor vehicles did in the last century. It will make mobility safer, cleaner, inclusive and smart. Today's agreement, backed by the Juncker Plan, is a valuable contribution to a strong and competitive European transport industry that creates jobs and gives an innovation boost to the entire economy."

Note to the editor:

European Investment Bank

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. 

About KTM

KTM AG, subsidiary of the listed KTM Industries AG, is a premium manufacturer of high-performance motorcycles and components for both offroad and street motorcycle use. KTM AG is driven by the strength of its brands KTM, Husqvarna Motorcycles and WP. Fueled by the passion of its more than 4.000 employees, KTM AG has become the largest European motorcycle manufacturer. In partnership with 31 international sales subsidiaries and two additional joint ventures, KTM AG staff service over 2,000 dealers and importers worldwide on behalf of both KTM Sportmotorcycle GmbH and Husqvarna Motorcycles GmbH, in addition to a growing network of WP authorized centres. The shared vision of KTM AG and its constituent brands is to be a world-leading independent motorcycle manufacturer, with distinct brands and exceptional products. 

Investment Plan for Europe

The Investment Plan for Europe, (the Juncker Plan) is one of the EU's key actions to boost investment in Europe, thereby creating jobs and fostering growth. To this end, smarter use will be made of new and existing financial resources. The EIB Group is playing a vital role in this investment plan. With guarantees from the European Fund for Strategic Investments (EFSI), the EIB and the European Investment Fund (EIF) are able to take on a higher share of the risk in projects, encouraging private investors to participate in these projects. EFSI was initially intended to mobilise investment of EUR 315 billion throughout the EU over a period of three years until mid-2018. In December 2017, the European Parliament and the Member States reached an agreement to extend the duration of EFSI to 2020 and increase its financial capacity to EUR 500 billion. In addition to EFSI, the new EIAH advisory platform helps public and private-sector project promoters to structure investment projects more professionally. The investment plan should also create a more investment-friendly EU regulatory environment, particularly in the digital, energy and capital markets sectors.