The Mexican state of Chihuahua is shooting for Wednesday to issue a Ps1.2 billion ($112 million), 10-year deal backed by federal co-participation revenue, which comes from payments by the central government to states and municipality. All the proceeds of the transaction will go to paying down loans owed to BBVA Bancomer, Banamex, and Banobras, according to Jesus Ruiz, director of spending of Chihuahua's secretariat of finance. "We're lowering the rate and capping it," he said, adding that the state sought to put a 12% cap on the upcoming deal. Initially the cap was projected at 15% (see ASR 9/26/05)

If pricing is held Wednesday, funding will be on Friday. The placement agent is Acciones y Valores, a unit of Banamex, which is, in turn, owned by Citigroup. The structurer was Corporativo en Finanzas. Fitch Ratings and Moody's de Mexico have rated the deal AAA(mex)' and Aaa.mx' on their respective national scales.

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