  The ATLAS and CMS collaborations have announced discovery of a ~125 GeV Higgs
boson, after a combined analysis of the di-photon and ZZ search channels. This
observation has significant impact on low-energy supersymmetry. First, some
fine-tuning is necessary to accommodate such a Higgs mass in the Minimal
Supersymmetric Standard Model (MSSM) because the tree-level mass of the SM-like
Higgs boson in the MSSM is relatively small. We study the possibility of
lifting the mass of the SM-like Higgs boson by non-decoupling D-term from an
additional U(1) gauge symmetry. In particular, we focus on a gauged
Peccei-Quinn symmetry which can also be related to a possible solution of the
mu problem in the MSSM. In addition to the measurement of the mass of the
Higgs, the data also reveals a tantalizing hint of a significantly enhanced
di-photon signal rate, 1.56 pm 0.43 and 1.9 pm 0.5 times of the SM prediction
in the CMS and ATLAS experiments, respectively. We demonstrate that such an
enhancement can be accommodated in this MSSM extension. Anomaly cancellation
requires the introduction of charged exotics. If some of them happen to be
light and have sizable coupling to the SM-like Higgs boson, the di-photon
signal rate can be enhanced significantly. EW precision measurements provide
stringent constraints on this model. Taking these into account, we identify two
benchmark scenarios. We argue that they are representative of large classes of
viable models beyond our current example which can consistently enhance the
Higgs to di-photon rate. We also comment on possible signals of such light
exotics at the LHC.
