The Mexican state of Oaxaca has priced a MXP1.2bn ($92m) domestic bond, according to people familiar with the transaction, raising half of its expected target. The 15-year bond priced at 9.00%, or Mbono+285bp, wide to 8.50%-area price talk. The issuer received 1.2x demand. The remaining MXP1.2bn will be provided to the Mexican state through a bank credit line with government development bank Banobras. The 1.5% guarantee from funds received by the federal government and 25% from monthly government federal transfers to states and municipalities were reduced to 0.77% and 12.77%, respectively. Oaxaca is using proceeds for public investment. Banamex, Interacciones and Santander managed the deal, rated A minus on a national scale, with Cofinsa as structuring agent.