Citigroup Global Markets Announces AUD 0.11953969 Partially Franked Distribution for QRE CitiFirst Instalment MINIs with 2 July 2026 Record Date

Distribution of AUD 0.11953969 Declared for QRE CitiFirst Instalment MINIs QREJOA and QREJOB

Citigroup Global Markets Australia Pty Limited, acting as issuer of the QRE CitiFirst Instalment MINIs, has officially declared a distribution amounting to AUD 0.11953969 per unit for holders of the ASX-listed products QREJOA and QREJOB. This distribution is partially franked, offering eligible investors potential franking credits alongside the cash payment, subject to individual tax circumstances.

The announcement specifies the exact distribution amount, reflecting the pass-through nature of distributions from the underlying BetaShares Australian Resources Sector ETF. CitiFirst Instalment MINIs are structured products providing leveraged exposure to the underlying asset or fund, with distributions passed through to MINI holders in accordance with the product’s trust structure. Investors are advised to consult a qualified tax adviser to understand the tax implications of the partially franked distribution based on their personal situation.

Record Date of 2 July 2026 Matches BetaShares Australian Resources Sector ETF Entitlement Date

The record date for the QRE CitiFirst Instalment MINIs is set to coincide exactly with the record date for the underlying QRE BetaShares Australian Resources Sector ETF, both falling on 2 July 2026. This synchronization reflects the design of CitiFirst Instalment MINIs to closely track the economic outcomes of the underlying fund, including distribution entitlement timing.

Investors holding QREJOA or QREJOB on 2 July 2026 will be entitled to receive the declared distribution. Purchasers of these products after the ex-distribution date of 1 July 2026 will not be eligible for this distribution. This alignment of dates is a deliberate structural feature to minimize timing discrepancies and ensure consistency for holders.

Ex-Distribution Trading for QREJOA and QREJOB Began 1 July 2026

The QRE CitiFirst Instalment MINIs (QREJOA and QREJOB) commenced trading ex-distribution on 1 July 2026, mirroring the ex-distribution date of the underlying QRE BetaShares Australian Resources Sector ETF. Trading ex-distribution means the product price adjusts to exclude the upcoming distribution for buyers from that date onward.

Market participants purchasing these products on or after 1 July 2026 should note that they will not receive the AUD 0.11953969 distribution. This is a standard practice for ex-distribution trading in listed structured products and ETFs. Public information did not disclose the immediate price impact of this adjustment beyond confirming the ex-distribution trading start date.

Distribution Payment to MINI Holders Expected on 16 July 2026

The company update states that the Trustee intends to pay the distribution to QRE CitiFirst Instalment MINI holders as soon as reasonably practicable after receiving the distribution from the underlying fund. The targeted payment date is 16 July 2026, which aligns with the anticipated receipt date of the distribution from the QRE BetaShares Australian Resources Sector ETF.

The phrase "as reasonably practicable" indicates some operational flexibility in payment timing, though 16 July 2026 is the primary target. Holders registered as of the 2 July 2026 record date should expect payment around this time. No alternative payment dates or contingency plans were disclosed in the update.

How CitiFirst Instalment MINIs Pass Through Distributions from the Underlying ETF

Issued by Citigroup Global Markets Australia Pty Limited, a participant of the ASX Group and Cboe Australia, CitiFirst Instalment MINIs provide leveraged exposure to an underlying asset—in this case, the QRE BetaShares Australian Resources Sector ETF—via a trust structure where the Trustee holds the underlying securities on behalf of MINI holders. Consequently, distributions from the underlying ETF are passed through to MINI holders rather than retained by the issuer.

This pass-through arrangement allows MINI holders to receive economic benefits, including distributions, that closely mirror direct ETF holders, though structural differences exist due to leverage, financing costs, and the instalment payment nature of the product. The partial franking status reflects the franking credits attached to dividends paid by Australian resources companies within the ETF.

QRE BetaShares Australian Resources Sector ETF as the Underlying Asset for QREJOA and QREJOB

The underlying reference asset for QREJOA and QREJOB is the QRE BetaShares Australian Resources Sector ETF, which offers exposure to Australian companies in the resources sector, including mining, energy, and related industries. This sector is a key part of the Australian equities market. Distributions from the ETF represent dividends and other income from its holdings.

The matching of key dates such as ex-distribution and record dates between the CitiFirst MINIs and the underlying ETF highlights the structural dependency of the MINI products on the ETF’s distribution schedule. Investors gain economic exposure to the resources sector through this layered structure. Changes in the ETF’s distribution policy, franking levels, or holdings could impact future distributions to MINI holders.

Partial Franking and Tax Considerations for Distribution Recipients

The declared AUD 0.11953969 distribution is partially franked, meaning part of it carries franking credits representing tax already paid by the underlying companies, while the remainder is unfranked. Eligible Australian resident investors may use these credits to offset personal income tax liabilities, potentially lowering the effective tax burden.

Tax treatment of distributions from structured products like CitiFirst Instalment MINIs can be complex and depends on individual factors such as residency, tax status, and product terms. The company did not disclose the breakdown between franked and unfranked components. Investors should consult the product’s disclosure documents and seek advice from qualified tax professionals for detailed information.

Paul Kedwell Signs Off as Warrants and Structured Products Manager at Citigroup Global Markets Australia

The update was signed by Paul Kedwell, Warrants and Structured Products Manager at Citigroup Global Markets Australia Pty Limited. The notification was submitted to the Australian Stock Exchange via the Derivatives Department, following standard reporting protocols for warrants and structured products under ASX rules.

Citigroup Global Markets Australia Pty Limited holds an Australian Financial Services Licence (AFSL 240992) and operates under ABN 64 003 114 832. The firm participates in both the ASX Group and Cboe Australia, actively engaging in Australian listed derivatives and structured products markets. This final warrant report is a routine but important compliance and communication step in the lifecycle of QREJOA and QREJOB during the current distribution cycle.

Upcoming Milestone for QREJOA and QREJOB Investors: Distribution Payment on 16 July 2026

With the ex-distribution date passed on 1 July 2026 and the record date confirmed as 2 July 2026, the next significant event for QREJOA and QREJOB holders is the distribution payment targeted for 16 July 2026. Investors registered as holders on the record date should anticipate receiving the AUD 0.11953969 partially franked distribution around this time. The Trustee’s obligation to pay as soon as reasonably practicable after receiving funds from the underlying ETF underpins this timeline.

Beyond this payment, holders will continue to monitor conditions in the Australian resources sector, given the direct link between the MINI’s value and the performance of the QRE BetaShares Australian Resources Sector ETF. Future distributions will depend on BetaShares’ decisions regarding the QRE ETF. No additional guidance or changes to product terms were provided beyond this report.