Diageo has launched and priced US$400m of three-year and US$600m of seven-year SEC registered securities.

The bonds were issued through Diageo Finance BV, with payment of principal and interest fully guaranteed by Diageo plc.

The three-year issue is due on 30 March 2009, and pays a coupon of three month US dollar LIBOR + 12 basis points. The seven-year issue is due on 1 April 2013 and pays a coupon of 5.5%.

Citigroup, Credit Suisse and RBS Greenwich Capital were the joint bookrunners, while Deutsche Bank Securities, Goldman Sachs & Co., JPMorgan and UBS Investment Bank were co-managers.

Diageo said proceeds from the two issues would be used for general corporate purposes.