IGO Interactive Annual Report 2018

Notes to the consolidated financial statements 30 June 2018 (continued) Capital structure and financing activities This section of the notes provides further information about the Group's borrowings, contributed equity, reserves, accumulated losses and dividends, including accounting policies relevant to understanding these items. 16 Borrowings 2018 $'000 2017 $'000 Current Unsecured Bank loans 56,226 56,226 Total current borrowings 56,226 56,226 2018 $'000 2017 $'000 Non-current Unsecured Bank loans 84,589 140,815 Total non-current borrowings 84,589 140,815 (a) Corporate loan facility On 16 July 2015, the Company entered into a Syndicated Facility Agreement (Facility Agreement) with National Australia Bank Limited, Australia and New Zealand Banking Group Limited and Commonwealth Bank of Australia Limited for a $550,000,000 unsecured committed term finance facility. The Facility Agreement comprised: • A $350,000,000 amortising term loan facility expiring in September 2020; and • A $200,000,000 revolving loan facility expiring in September 2020. In October 2016, Company repaid $71,000,000 of the amortising term loan facility and also cancelled a further $79,000,000 of the same facility. During 2018, the Company repaid further amounts of $57,142,000 of the amortising term loan facility in accordance with the repayment schedule. The Company undertook a further restructure of the facility in June 2018, with the cancellation of the $200,000,000 revolving loan facility. Following the above repayments and restructures, the Company's amortising loan facility is $142,858,000. Transaction costs are accounted for under the effective interest rate method. These costs are incremental costs that are directly attributable to the loan and include loan origination fees, commitment fees and legal fees. At 30 June 2018, a balance of unamortised transaction costs of $2,043,000 (2017: $2,959,000) was offset against the bank loans contractual liability of $142,858,000 (2017: $200,000,000). Total capitalised transaction costs to 30 June 2018 are $5,495,000 (2017: $5,495,000). Borrowing costs incurred during the previous financial year of $12,779,000 related to a qualifying asset (Nova Project) and were capitalised in accordance with AASB 123 Borrowing Costs . Refer to note 14. The Facility Agreement has certain financial covenants that the Company has to comply with. All such financial covenants have been complied with in accordance with the Facility Agreement. (b) Assets pledged as security There were no assets pledged as security at 30 June 2018 (2017: $nil). Independence Group NL 30 94 — IGO ANNUAL REPORT 2018 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2018