Large non-financial corporates are raising funds more cheaply on the debt capital market than more highly rated banks can source them, thanks to demand from bond investors for diversification away from financial issuers.According to a Bloomberg report, Fonterra Cooperative Group, the world's biggest dairy exporter, priced a A$300 million issue of five-year notes on Monday, paying 100 basis points over the bank bill swap rate. The notes are rated A+ by Standard & Poor's.National Australia Bank, which has an AA rating, recently paid 117 basis points over the swap rate for a $2.8 billion issue with a similar maturity.Bloomberg said companies outside the finance industry accounted for just six percent of a record $64.3 billion of bonds sold in Australia in the June half, compared with about 50 percent of US$529.9 billion of investment-grade US bonds. "Fonterra emphasises the hunger for non-financial issuers in the Australian market," said John Sorrell, head of credit at Tyndall Investment Management. "Company debt tends to be less affected by the regulatory uncertainties that are currently impacting the financial issuers."