Issuance in the domestic corporate bond market amounted to A$87.4 billion in 2012, which puts the year ahead of the 2011 total of A$72.0 billion, but well short of the 2009 record of A$101.2 billion. However, the notable feature of 2012 was the increase in true corporate (non-financial) bond issuance, which, at A$11.1 billion, comprised 12.6 per cent of total issuance.True corporate issuance accounted for just 7.6 per cent of the 2011 total.The new year has got underway in the usual fashion in the domestic market, with supranational and agency issuers leading the way. SSA issuers (supranational, sovereign and agency) sold more than A$2.2 billion worth of bonds last week, with most of the activity being in the form of tapping existing lines.KfW was an exception, opening a new 5.5 year line. KfW (rated AAA) sold A$1.0 billion of July 2018 bonds, priced at Commonwealth government securities (CGS) plus 91 bps, to yield 3.9 per cent.Earlier in the week, the Inter-American Development Bank (rated AAA) added A$150 million to its July 2022 line, to take outstandings to A$850 million. The top up was priced at 76 bps over CGS to yield 4.11 per cent.Later in the week, the European Investment Bank (rated AAA) added A$400 million to its August 2022 line. The increase takes the total outstanding to A$1.05 billion and was priced at 125 bps over CGS.On Friday, Nordic Investment Bank (rated AAA) added A$100 million to its April 2022 line, at a spread of 76 bps to CGS, and Landwirtschaftliche Rentenbank (AAA) added A$400 million to its March 2020 line, at a spread of 101.25 bps to CGS. The increases taking outstandings to A$775 million and A$1.05 billion, respectively, and are the third since each line was opened almost a year ago.Kommunalbanken (rated AAA) completed the week with a A$150 million addition to its July 2022 line, to take the total outstanding to A$450 million. The increase was priced at 122.75 bps over CGS.Late last year, there was a report that the Australian Government was considering establishing a national financing authority for local councils similar to New Zealand's recently established Local Government Funding Agency. The authority would issue AAA-rated government guaranteed bonds and on-lend the funds to local councils for investment in infrastructure.The council borrowings would have be approved by the relevant state government and guaranteed by the state. And there is the rub.Councils have always been able to issue bonds in their own right, so long as the issue is approved by their respective state governments, but state governments have been most reluctant to give such approval.