Exim in deal to bankroll Farhan Akhtar films

After a fruitful association with Yash Raj Films, Export-Import Bank of India (Exim Bank) has now agreed to finance films made by producer-director Farhan Akhtar's Excel Entertainment.

The first Farhan Akhtar film to be financed by the bank will be the remake of "Don", sources said. Akhtar, the director of such highly successful film as 'Dil Chahta Hai', is remaking the 1970s Amitabh Bachchan blockbuster "Don" with Shahrukh Khan and Priyanka Chopra in lead roles.

Exim Bank had earlier entered into an arrangement to finance movies produced by Yash Raj Films which includes Hum Tum, Dhoom and Veer-Zaara. "In line with our identity, we have supported this service industry, which has been earning foreign currency for the country", said a senior Exim Bank official.

Exim Bank is also in the process of financing a Tamil movie, "Sringaram". This film is about Devadasis who lived in Thanjavur district in the 1920s. Exim Bank offers finance for film production at 500 basis points over Libor (London inter-bank offered rate).

"We normally lend at around 200 basis points above Libor to other sectors. The film industry borrows from non-institutional sources at a much higher rate, so the bank does not consider the interest rate it charges as being on the higher side, said bank officials.