2021 Annual Report

Notes to the consolidated financial statements 30 June 2021 (continued) 17 Borrowings (continued) (c) Financing arrangements The Group had the following financing arrangements in place at the reporting date: 2021 $'000 2020 $'000 Total facilities Corporate debt facility 450,000 57,145 Contingent instrument facility 1 1,522 1,211 451,522 58,356 Facilities used as at reporting date Corporate debt facility - 57,145 Contingent instrument facility 1,522 1,211 1,522 58,356 Facilities unused as at reporting date Corporate debt facility 450,000 - 450,000 - 1. This facility provides financial backing in relation to non-performance of third party guarantee requirements. (d) Recognition and measurement (i) Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs and amortised over the period of the remaining facility. (ii) Borrowing costs General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Other borrowing costs are expensed in the period in which they are incurred. IGO Limited 35 Notes to The Consolidated Financial Statements 30 June 2021 IGO ANNUAL REPORT 2021 — 105