Completion Bond Firm Film Finances Inc. to Open Asia Office in Singapore (Exclusive)
The bond concept may face resistance from new Chinese film investors.
SINGAPORE – Completion guarantee company Film Finances Inc. is branching into Asia with the establishment of an office in Singapore.
The company plans to work with investors across Asia on Asian-based projects and co-productions. Singapore was chosen for its Asian headquarters for its legal structure and financial expertise.
“Singapore has a good legal and financial system as a trading center, and the Singapore Media Development Authority has been very supportive in helping us set up our office,” Film Finances co-president Steven Ransohoff told The Hollywood Reporter.
Ransohoff believed that the growing co-productions between Hollywood and Asian companies and their rising budgets would turn completion guarantee into a common practice in Asia. “As the Hollywood studios work on co-productions and go into places they’ve never worked in before, they’re more inclined to use our services, as for the slight amount of money that they have to pay they’d have some measures of securities," he said
One concern, though, is the abundance of new Chinese investors, which might render completion bonds unnecessary, as producers would rather drop the investor who requires the guarantee for another willing partner with no such conditions, instead of paying the percentage fee. But the skyrocketing budgets of co-productions make bonds essential.
“As liquidity gets tighter, investors would want to get some guarantee,” Ransohoff said.