State-owned QatarEnergy has secured a $3 billion five-year loan from four Chinese banks, highlighting the continued willingness of Asian lenders to finance Gulf borrowers despite the ongoing US-Iran conflict and disruption around the Strait of Hormuz.

The facility was provided by the Bank of China, Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China and China Construction Bank (Asia).

The loan carries an interest rate of 50 basis points above the Secured Overnight Financing Rate (SOFR). The proceeds will be used for QatarEnergy’s general working capital requirements, according to people familiar with the transaction. QatarEnergy and the four lenders did not immediately comment on the deal.

The financing comes at a challenging time for Qatar’s energy industry. The Strait of Hormuz remains affected by the conflict, creating major difficulties for the movement of oil and liquefied natural gas (LNG) from the Gulf. Qatar has been particularly exposed because the waterway is critical to its LNG exports.

QatarEnergy has already extended force majeure notices on LNG deliveries to several customers. The company has also purchased US LNG cargoes to help maintain supplies to key Asian buyers, including India, Japan, South Korea, Taiwan and Bangladesh, after its own exports were disrupted.

The conflict has also affected Qatar’s finances. In September, the country raised another $3 billion through an international bond sale as lower LNG exports and the disruption to Hormuz pushed its fiscal deficit higher. Qatar’s LNG revenue fell sharply in the second quarter, while the country’s quarterly budget deficit reached $5.8 billion, according to data cited by Bloomberg.

Despite the risks, Chinese lenders have maintained a strong presence in Gulf financing. Chinese banks’ lending to Gulf borrowers rose more than five-fold in 2025 to a record $11.5 billion, excluding bilateral loans. Recent deals show that lenders continue to provide funding even as geopolitical uncertainty remains elevated.

The latest loan also highlights the growing financial relationship between China and Gulf energy producers. Chinese refiners have recently increased purchases of Iraqi and Qatari crude as Iranian supplies decline, further strengthening energy and financial ties between the two regions.

For QatarEnergy, the financing provides additional liquidity at a time when the company is dealing with export disruptions and damaged LNG infrastructure. Investors will continue to watch the reopening of the Strait of Hormuz, the recovery of Qatar’s LNG production and the broader impact of the conflict on Gulf energy markets.

Discover the next big investment! Tradz by EquityPandits’ IPO screener helps you identify promising initial public offerings. Download Tradz by EquityPandit and get ahead of the curve! Sign Up Now & Find Your Next IPO Gem!