Diageo launches and prices four-tranche $2 billion fixed and floating rate USD denominated bonds

Diageo, a global leader in beverage alcohol, yesterday launched and priced an SEC-registered $2 billion bond transaction consisting of $500 million floating rate notes due May 2020; $500 million 3.000% notes due May 2020; $500 million 3.500% notes due September 2023; and $500 million 3.875% notes due May 2028.  The issuer of the bonds is Diageo Capital plc, with payment of principal and interest fully and unconditionally guaranteed by Diageo plc.

Barclays, BofA Merrill Lynch, Goldman Sachs & Co. LLC and UBS Investment Bank were joint active book-running managers. Proceeds from this issuance will be used for general corporate purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities either in the United States or any other jurisdiction, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration and qualification under the securities laws of any such jurisdiction. Any public offering of securities in the United States is being made solely by means of a prospectus supplement to the prospectus included in the registration statement filed with the United States Securities and Exchange Commission (SEC) by Diageo plc, Diageo Capital plc and Diageo Investment Corporation.

Diageo has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates.  Before you invest, you should read the prospectus in that registration statement and other documents Diageo has filed with the SEC for more complete information about Diageo and this offering.  You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.  Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling: Barclays, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, toll-free on 888-603-5847 or by emailing Barclaysprospectus@broadridge.com; BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC  28255-0001, Attn: Prospectus Department or by emailing dg.prospectus_requests@baml.com; Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, toll-free on 866-471-2526, facsimile on 212-902-9316 or by emailing prospectus-ny@ny.email.gs.com; or UBS Securities LLC, 1285 Avenue of the Americas, New York, New York 10019; Attn: Prospectus Department, or toll-free on 888-827-7275.