Completion bonds to be offered to Spanish films
MADRID — In a groundbreaking initiative, film/TV financing and production group Markab Creativos will unveil plans Tuesday for a e30 million ($38.6 million) financing facility targeting Spanish film/TV production.It will also launch Markab Completion, which will facilitate completion bonds for Spanish films. Housed under Markab Finances, the facility will trigger guarantees from Spanish banks, allowing Spanish film producers to discount TV contracts, public subsidies and distribution advances against bank loans, Markab prexy Vicente Mora said. The facility will be offered “at very low interest,” he added. Tapping a clutch of foreign-based film funds, the financing line is being guaranteed by back-to-back agreements between international and Spanish banks leveraged against the funds assets. GBS Finanzas, a reputed middle-market Spanish independent investment bank, is advising on the deal. It is working to finish paperwork on investors’ framework agreements. Many indie Spanish producers cannot currently discount TV or state aid commitments at banks, forcing them to put up personal assets as guarantees or co-produce with larger production companies. “This is a pioneering move aimed at growing the Spanish industry,” said GBS exec Javier Herrero. For its completion bond operation, Markab has inked an exclusive deal with risk management company Marsh Inc., a unit of Marsh & McLennan, the world’s biggest insurance broker. “Right now Spanish films have multirisk insurance. Markab Completion will offer true completion bonds,” said Marsh Spain senior account exec Maria Martin.