EXHIBIT 2
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[DESC LOGO]
DESC ANNOUNCES SECOND PLACEMENT OF MEDIUM TERM NOTES
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Mexico City, July 12, 2000 - DESC, S.A. de C.V. (NYSE: DES;
BMV: DESC) (the "Company") announced today that it completed a secondary issue
of medium term notes for a total of Ps. 1 billion in equivalent Units of
Investment (UDIS), with a net interest rate of 8.20% and a maturity period of
seven years. The notes have been oversubscribed and the issue is considered
highly successful.
The success of this transaction, the first of its type since
the presidential elections, is evidence of the solid fundamentals of the Mexican
market and the confidence exhibited by investors in DESC's financial stability
and creditworthiness. The issue has obtained an MAA rating from Duff & Phelps.
The issue and registration agents will be Casa de Bolsa BBVA
Bancomer and Inversora Bursatil (Inbursa). The common representative will be
Casa de Bolsa Inverlat.
The following are among the objectives of the issue:
>> The payment of short-term liabilities
>> The continue with our strategy to minimize exposure to foreign
currencies
>> To take advantage of the positive outlook regarding Mexican inflation
>> The reduction of financial costs
>> To improve our schedule maturities
This placement will be done under the Ps. 3 billion program
authorized by the Mexican National Banking and Securities Commission (CNBV),
from which Ps. 850 million (or 324 million in UDIS) has already been placed in
October of 1999 in to the afore mentioned amount.
CONTACTS:
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Arturo D'Acosta Ruiz Alejandro de la Barreda Alex Cancio, Peter Webpage
Corporate Treasury Director Manager of Investor Relations Firestein www.desc.com.mx
525 261 80 00 ext 2830 525 261 8000 ext 2813 Thomson Financial ---------------
[email protected] Investor Relations
-------------------------- 212-701-1973
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