INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) Capital structure and financing activities This section of the notes provides further information about the Group's borrowings, contributed equity, reserves and dividends, including accounting policies relevant to understanding these items. 16 Borrowings 2017 $'000 2016 $'000 Current Unsecured Bank loans 56,226 43,154 Total current borrowings 56,226 43,154 2017 $'000 2016 $'000 Non-current Unsecured Bank loans 140,815 222,672 Total non-current borrowings 140,815 222,672 (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 comprises: • 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. Following this restructure, the Company has available facilities of: amortising loan facility of $200,000,000, which is fully drawn at balance date; and revolving loan facility of $200,000,000, which is undrawn at balance date. Total capitalised transaction costs to 30 June 2017 are $5,495,000 (2016: $5,549,000). 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 2017, a balance of unamortised transaction costs of $2,959,000 (2016: $5,174,000) was offset against the bank loans contractual liability of $200,000,000 (2016: $271,000,000). Borrowing costs incurred during the year of $12,779,000 (2016: $11,055,000) relate to a qualifying asset (Nova Project) and have been 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 2017 (2016: $nil). Independence Group NL 61 IGO ANNUAL REPORT 2017— 91 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017