Refinancing of syndicated loans is likely to fall away in 2013 and 2014 after a bumper year in 2012, perhaps frustrating the quest by banks to maintain on-balance sheet lending levels at a time of subdued demand.The cost of borrowing for corporates is, however, falling, both in loan markets and in the debt capital market, in line with the reduced costs of funds for banks in the wholesale market, a Finance and Treasury Association seminar in Melbourne heard yesterday.Mark Bower, director of debt markets' origination at National Australia Bank said the bank projected demand for new syndicated loans, based on maturing facilities, to be A$46 billion in 2013 and $58 billion in 2014.Banks financed $82 billion in syndicated loans in 2012, on NAB estimates. This was down from $114 billion in 2011.Another NAB executive, Brad Scott, the bank's head of corporate bond origination, highlighted the strength of the domestic bond market over the last year.Scott said corporates sold A$12.6 billion in medium-term notes in 2012 and described the year as a "renaissance" in the MTN market.He also highlighted that while MTN issuance last year was at a similar level to the years preceding the credit crunch, a minority of corporate bonds were then "wrapped" or insured (often by firms whose own credit worthiness was found wanting over the course of the crisis).Scott estimated that the bond market met 40 per cent of the funding needs of corporates in 2012, up from 25 per cent five years ago.Scott said there were around 60 investors in corporate bonds in Australia, of which 25 were key.He said around 15 per cent of recent MTN volume was being placed with investors in Asia or Europe.The US private placement market is also providing further options for Australian companies seeking more diverse sources of debt funding.Bill Stevenson, head of originations for the US private placement market for Commonwealth Bank, said Australian borrowers remained among the top three users of this market, which mainly caters to the investment needs of US life insurance companies.While banks are keen to help corporate customers raise debt in the bond market, monthly financial aggregates from the Reserve Bank of Australia released yesterday showed there was no growth in business lending in January 2013. Growth in business lending over the last 12 months was 2.8 per cent.