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Australian corporates are due to refinance nearly $US50 billion ($70bn) worth of debt this year, and companies are already diversifying away from banks in favour of a number of international funds that have set up domestic operations.DataRoom understands that Prudential and MetLife are becoming active lenders to a growing list of local companies during refinancing talks.A KPMG report has found that at least $US4bn worth of debt that is due to expire this year is held by Australian Real Estate Investment Trusts.READCAROLINE OVERINGTONLarge-scale institutional debt investors have started to target Australian investment grade borrowers. US pension funds are increasingly providing an alternative to banks, with longer-date lending of seven to 10 years better priced than banks.Meanwhile, former high-flyer and would-be cobalt developer Australian Mines could be forced to chance its arm in tricky equity markets after its long-awaited $80 million investment from Korean giant SK Innovation disappeared.SK’s option to take a 19.9 per cent stake in Australian Mines at 12c a share had been a key feature of the high-profile offtake agreement signed between the pair last year.But there had been rising doubt about whether SK would actually exercise that option. Australian Mines confirmed yesterday that the option had formally lapsed.It raises a question about how Australian Mines will now fund its endeavours. It spent $9.1m on exploration, development and administration in the first half and had just $586,557 in cash at the end of December. Since then it has received a $1.9m research and development rebate plus a $545,000 GST refund, which should give it breathing space for the next few months.But with its shares now at 3.7c each, well shy of the 12c exercise price on SK’s option and its 15c high of a year ago, a dilutive equity raising may be needed.The best hope may be to strike a prepayment deal with SK over the offtake from Australian Mines’ Sconi project.Additional reporting: Paul Garvey