QatarEnergy obtains $3 billion loan from four Chinese banks as Hormuz shutdown bites

QatarEnergy finalized a $3 bn syndicated loan exclusively backed by four Chinese lenders—Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China and China Construction Bank Asia. The five-year facility is priced tightly at 50 basis points above the Secured Overnight Financing Rate and will be used for general working capital. The financing comes as the ongoing closure of the Strait of Hormuz has forced the company to extend force-majeure on LNG deliveries to several Asian customers and suspend shipments to Italy’s Edison, cutting revenue and delaying critical equipment shipments.

The CEO warned that expansion projects may be postponed due to the disruption. This deal highlights a shift in Middle Eastern debt markets, with Chinese banks increasing Gulf exposure, as regional lending rose to a record $11.5 bn last year. Similar Gulf transactions include a $300 mn loan to Kuwait’s Boubyan Bank and a $2 bn corporate loan being syndicated by Qatar National Bank with ICBC as lead arranger.