NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the period ended 28 July 2018 D3 BORROWINGS (a) Structure of debt The debt funding of the Group at 28 July 2018 comprised of a revolving cash advance syndicated facility of $420 million, which contains two tranches. This facility was established on 29 October 2009, drawn down on 6 November 2009 and amended and restated on 3 June 2011, 9 July 2013 and 23 June 2015. At balance date the following amounts were drawn: 2018 2017 $'000 $'000 Bank loans 150,000 145,000 Less: transaction costs (835) (1,633) Borrowings 149,165 143,367 The terms and conditions of the Group's revolving cash advance facility is as follows: Amount Term Expiry date Revolving cash advance facility - Tranche A $145 million 4 years 21 August 2019 Revolving cash advance facility - Tranche C $275 million 4 years 21 August 2019 As the facility is revolving, amounts repaid may be redrawn during their terms. (b) Security The revolving cash advance facility in place at 28 July 2018 is unsecured, subject to various representations, undertakings, events of default and review events which are usual for a facility of this nature. (c) Fair value The fair value of existing borrowings approximates their carrying amount, as the impact of discounting is not significant. (d) Risk exposures Details of the Group's exposure to risks arising from current and non-current borrowings are set out in note E1. Accounting policy 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. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Borrowing costs Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed. 66 Myer Annual Report 2018