Exim Bank raises exposure to film financing, funds 5 films...

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Mumbai, Oct 22: Expanding its exposure in financing films having overseas potentials, the Export-Import Bank of India (Exim Bank) has part-funded five movies by forex resources in the last six months.

Exim Bank has offered finances at 500 basis points over and above Libor. The bank usually lends at around 200 basis points above Libor to other sectors.

After financing the Spanish version of Kaho Na Pyar Hai (entitled Reencuentro Con El Destino), the bank has gone ahead to finance four more Yash Chopra banner films.

Of these five films (which includes the Spanish version), three of them have already made it to the box office, while two are on the floor, said a source from the institution. The two Yash Raj films financed by the Exim Bank, are Hum Tum and Dhoom and Veer- Zaara is scheduled to release during this Diwali.

However the sources declined to comment on the fifth project. Exim Bank had entered the arena of film financing to explore its untapped potential, especially with overseas viewers.

The sources further said, for Exim Bank, film financing is a limited activity. In recent times, many Indian films have gone overseas to earn good foreign exchange and the bank has capitalised on this trend, said sources.

Moreover, it is a safe business proposition for the institution as it chose a renowned name in the Hindi film industry, i.e. that of Yash Chopra, to make a foray into this financing, said the sources.

Having offered finances to Yash Chopra’s Yashraj Films in the past, Exim Bank is now eyeing for other names in the film making industry, the sources said. “Exim bank is also open to provide finance to other Indian producers, who have a good track record in this field,” said the sources.