CitiFirst Self-Funding Instalment MINIs Linked to HVST Announce AUD 0.06092893 Unfranked Distribution with Record Date Set for July 2, 2026

Unfranked Distribution of AUD 0.06092893 Announced for HVSSO1 and HVSSO2

Citigroup Global Markets Australia Pty Limited, acting as issuer, has officially declared a final unfranked distribution of AUD 0.06092893 per unit for its CitiFirst Self-Funding Instalment MINIs linked to the BetaShares Australian Dividend Harvester Fund (HVST). The instruments trade on the ASX under the tickers HVSSO1 and HVSSO2, with the distribution applying equally to both. This announcement was issued by Paul Kedwell, Warrants and Structured Products Manager at Citigroup Global Markets Australia, dated 1 July 2026.

The distribution amount is unfranked, indicating no franking credits accompany the payment for tax purposes. This aligns with the distribution characteristics of the underlying HVST fund, which targets dividend harvesting from Australian equities but does not guarantee franked income in every period. Holders should consider the tax implications of receiving an unfranked distribution based on their individual circumstances and may wish to seek advice from a financial professional.

Distribution Applied to Loan Reduction Under Self-Funding Instalment Framework

A defining feature of the CitiFirst Self-Funding Instalment MINI product is that distributions from the underlying fund are not paid out as cash to holders. Instead, as outlined in section 1.1 of the Product Disclosure Statement (PDS), the distribution amount is directed by the holder to reduce the outstanding loan balance on their instrument. This process gradually increases the Equity portion of the holder’s position over time as the loan balance diminishes with each distribution.

This structure appeals to investors seeking leveraged exposure to income-generating funds while allowing automatic deleveraging through distributions without active intervention. The loan reduction feature means holders progressively own a larger share of the underlying asset with each distribution cycle, potentially compounding benefits over a multi-year Holding Period. Investors should carefully review the PDS to fully understand the mechanics, as the tax treatment of loan reductions may differ from that of standard cash dividends.

HVSSO1 Loan Balance Declines from $7.1218 to $7.0625 Post-Distribution

For HVSSO1 holders, the outstanding loan amount will reduce from $7.1218 to $7.0625 following the application of the AUD 0.06092893 distribution to the loan balance. This represents a decrease of approximately $0.0593, consistent with the declared distribution after any rounding or structural adjustments per the product terms. The updated loan balance of $7.0625 will be effective from the record date of 2 July 2026.

The loan balance significantly influences the MINI’s pricing and Leverage profile, as the Market Value of the MINI is generally the difference between the underlying HVST units’ value and the outstanding loan. A reduced loan balance, assuming other factors remain constant, increases the net asset value attributable to the holder’s equity. Investors should update their Intrinsic Value calculations for HVSSO1 to reflect the new loan balance of $7.0625.

HVSSO2 Loan Balance Falls from $5.3409 to $5.2813 Effective 2 July 2026

Holders of HVSSO2 will observe their loan balance decrease from $5.3409 to $5.2813, reflecting the same AUD 0.06092893 distribution applied against the loan. This roughly $0.0596 reduction aligns with the declared distribution amount, with minor differences likely due to rounding as specified in the product’s PDS. The revised loan balance of $5.2813 becomes effective on the record date, 2 July 2026.

The lower initial loan balance for HVSSO2 compared to HVSSO1 suggests these represent distinct series or tranches of the same underlying fund exposure, potentially issued at different times or under varying terms. No additional details about the differences between the two series were provided in this update. Investors holding one or both instruments should note the confirmed loan reductions will be reflected in the official product terms from the record date.

Ex-Distribution and Record Dates Match Underlying BetaShares HVST Fund

The CitiFirst Self-Funding Instalment MINIs began trading ex-distribution on 1 July 2026, exactly matching the ex-distribution date of the BetaShares Australian Dividend Harvester Fund (HVST). Similarly, the record date of 2 July 2026 aligns with that of HVST. This synchronization is intentional to ensure the instalment MINI’s distribution event corresponds directly with the underlying fund’s income event, maintaining economic parity between holding the instalment product and holding the fund directly (subject to leverage and loan balance differences).

Aligning ex-distribution and record dates between the derivative and underlying fund is standard for structured products of this nature, minimizing timing mismatches that could cause unintended economic effects for holders. Investors who held HVSSO1 or HVSSO2 on or before 30 June 2026 were registered before the ex-distribution date and are entitled to the loan reduction from this distribution. Purchases made on or after 1 July 2026 are not eligible for this distribution cycle.

BetaShares HVST Fund Drives Distribution Events Underlying the Instalment MINIs

The BetaShares Australian Dividend Harvester Fund (ASX:HVST) is an exchange-traded managed fund targeting exposure to high-yield Australian equities through a dividend harvesting strategy. It aims to provide regular income distributions by actively managing its portfolio around dividend payment dates of constituent companies. The CitiFirst Self-Funding Instalment MINIs over HVST offer leveraged exposure to the fund, enabling investors to amplify participation in income and Capital movements relative to their equity investment.

The declared distribution stems from HVST’s own distribution to unitholders, which is then captured at the instalment MINI level and applied to reduce the outstanding loan. Future distribution amounts on HVSSO1 and HVSSO2 will depend directly on HVST’s ongoing distribution schedule and amounts declared by BetaShares as Fund Manager. Investors seeking to anticipate future loan reductions should monitor HVST’s distribution announcements independently.

Citigroup Global Markets Australia’s Role as Issuer and Product Manager

Citigroup Global Markets Australia Pty Limited (ABN 64 003 114 832, AFSL 240992) serves as issuer and manager of the CitiFirst structured product suite, including self-funding instalments, trading warrants, turbos, MINIs, and standard instalments. The firm is a participant of the ASX Group and Cboe Australia, enabling it to issue and list these products on the Australian market. This update was communicated by Paul Kedwell, Warrants and Structured Products Manager within the Derivatives Department.

As issuer, Citigroup Global Markets Australia is responsible for maintaining product terms, processing distributions per the PDS, and promptly informing the market of material events such as distribution declarations and loan balance adjustments. The company ensures transparent disclosure of loan balance changes following each distribution, as stipulated in governing documentation. Investors with questions about their instalment MINIs should consult the relevant PDS or contact the issuer directly.

Impact on Loan-to-Value Ratios for HVSSO1 and HVSSO2 Holders

For investors using Self-Funding Instalment MINIs as part of leveraged income or portfolio strategies, periodic loan balance reductions materially affect the instrument’s effective Leverage Ratio. As loan amounts decrease and HVST unit prices fluctuate, the Loan-to-Value (LTV) Ratio adjusts accordingly. Lower loan balances reduce the risk of triggering stop-loss or mandatory repayment provisions embedded in the product, which is particularly relevant during periods of market Volatility.

Following this distribution, HVSSO1’s loan balance is updated to $7.0625 and HVSSO2’s to $5.2813. Investors should compare these figures against current HVST unit prices to evaluate the equity buffer in their positions. The company did not disclose stop-loss thresholds, current HVST prices, or forward guidance on distribution frequency in this announcement. Holders requiring such information should refer to the product’s PDS, market data, or consult a licensed financial adviser.

Next Steps for HVST Instalment MINI Investors Post-Distribution

The immediate next step for HVSSO1 and HVSSO2 holders is the record date confirmation on 2 July 2026, when the new loan balances become effective. Going forward, investors should track BetaShares HVST fund’s subsequent distribution announcements, as each fund-level income event will trigger corresponding loan reductions under the Self-Funding Instalment structure. The timing and size of these distributions depend on HVST’s income from its equity holdings and the fund manager’s distribution policies.

The direct share price impact on the instalment MINIs was not detailed in publicly available information, although it is typical for exchange-traded instalment products to adjust in value on the ex-distribution date to reflect the removal of distribution entitlements. Investors should also monitor broader market conditions affecting HVST’s net asset value, as fluctuations in Australian equity markets and dividend yields will influence the underlying fund’s value and, consequently, the equity portion of the MINI position. No additional guidance or forward-looking statements were provided in this update.