Citigroup Announces AUD 0.06092893 Unfranked Final Distribution for CitiFirst Self-Funding Instalment MINIs on HVST with Record Date Set for July 2, 2026

Unfranked Distribution of AUD 0.06092893 Declared 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 affected securities, trading on the ASX under the codes HVSSO1 and HVSSO2, will receive the same distribution amount. This announcement was made by Paul Kedwell, Warrants and Structured Products Manager at Citigroup Global Markets Australia, dated 1 July 2026.

The distribution is unfranked, indicating no franking credits accompany it for tax purposes. This aligns with the distribution characteristics of the underlying HVST fund, which focuses on dividend harvesting from Australian equities but does not guarantee franked income with every distribution. Holders of these MINIs should consider the tax consequences of receiving an unfranked distribution based on their personal situations and may want to seek advice from a financial professional.

Distribution Applied to Reduce Loan Balance Under Self-Funding Instalment Structure

A defining aspect 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 applied by the holder to reduce the outstanding loan associated with their instrument. This process effectively increases the Equity portion of the holder's investment over time as the loan balance diminishes with each distribution.

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

Loan Balance for HVSSO1 Drops from $7.1218 to $7.0625 After Distribution

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

The loan balance is a critical factor in the MINI's pricing and Leverage profile, as the Market Value of the MINI depends largely on the difference between the underlying HVST unit value and the outstanding loan. A reduced loan balance, all else equal, 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 figure of $7.0625.

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

Holders of HVSSO2 will see their loan balance decrease from $5.3409 to $5.2813, reflecting the same AUD 0.06092893 distribution applied to reduce the loan. The approximately $0.0596 reduction closely matches the declared distribution, with minor differences possibly due to rounding under the PDS terms. This new loan balance is effective from the record date of 2 July 2026.

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

Ex-Distribution and Record Dates Synchronized with BetaShares HVST Fund

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

This alignment of dates is standard for structured products of this nature, reducing timing mismatches that could otherwise cause unintended economic consequences for holders. Investors who owned HVSSO1 or HVSSO2 before 30 June 2026 were eligible for the loan reduction from this distribution. Those acquiring units on or after 1 July 2026 are not entitled to this distribution cycle.

BetaShares HVST Fund Drives Distribution Events for Instalment MINIs

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

The distribution declared here stems from HVST’s own payout to unitholders, which is then reflected at the instalment MINI level and applied to reduce the outstanding loan. Future distributions for HVSSO1 and HVSSO2 will depend on HVST’s ongoing distribution schedule and amounts declared by BetaShares as the Fund Manager. Investors may find it helpful to track HVST’s distribution announcements to anticipate future loan reductions.

Citigroup Global Markets Australia’s Role as Issuer and Manager

Citigroup Global Markets Australia Pty Limited (ABN 64 003 114 832, AFSL 240992) serves as the issuer and manager of the CitiFirst structured products range, which includes 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 issued 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 according to the PDS, and timely market communication of material events such as distribution declarations and loan balance adjustments. The company ensures transparency and accuracy in disclosing loan balance changes following each distribution. Investors with questions about their instalment MINIs are advised to consult the relevant PDS or contact the issuer directly.

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

For investors employing Self-Funding Instalment MINIs as part of leveraged income or portfolio strategies, the periodic loan balance reduction is significant as it affects the instrument’s effective Leverage Ratio. As the loan decreases and the underlying HVST unit price changes, the Loan-to-Value (LTV) Ratio adjusts accordingly. A lower loan balance reduces the risk of triggering stop-loss or mandatory repayment thresholds embedded in the product, which is particularly relevant during periods of market Volatility.

Following this distribution, HVSSO1’s loan balance stands at $7.0625 and HVSSO2’s at $5.2813. Investors should compare these figures with current HVST market values to evaluate their equity buffer. The company did not provide stop-loss levels, current HVST prices, or distribution frequency guidance in this update. Holders seeking such information should consult the PDS, market data, or 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. Beyond this, investors should watch for BetaShares HVST’s upcoming distribution announcements, as each fund-level distribution triggers a corresponding loan reduction 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 policies.

The immediate price impact on the instalment MINIs was not detailed in public information, though it is typical for exchange-traded instalment products to adjust downward on the ex-distribution date to reflect the removal of distribution entitlement. Investors should also monitor broader market conditions affecting HVST’s net asset value, as changes in Australian equity markets and dividend yields influence the underlying fund’s value and thus the equity portion of the MINI. No additional guidance or forward-looking statements were included in this announcement.