Citigroup Global Markets Announces AUD 1.20164574 Distribution for HNDQ Instalment MINIs with 2 July 2026 Record Date

HNDQ CitiFirst Instalment MINIs Declare AUD 1.20164574 Unfranked Distribution

Citigroup Global Markets Australia Pty Limited, as issuer, has officially announced a distribution of AUD 1.20164574 per unit for holders of the HNDQ CitiFirst Instalment MINIs, which trade on the Australian Securities Exchange under the tickers HNDJOA and HNDJOB. This distribution is unfranked, indicating no franking credits will be attached for Australian tax purposes.

The update, signed by Paul Kedwell, Warrants and Structured Products Manager at Citigroup Global Markets Australia, outlines the key dates for eligibility and payment. Investors must be registered holders as of the record date, 2 July 2026, to receive the distribution. This announcement represents the final Warrant report related to this distribution event for the HNDQ CitiFirst Instalment MINIs.

Alignment of HNDQ Distribution Record Date with Betashares Nasdaq 100 Currency Hedged ETF

The declared distribution’s record date of 2 July 2026 is intentionally synchronized with the Betashares Nasdaq 100 Currency Hedged ETF’s record date, reflecting the structural connection between the instalment MINIs and their underlying ETF. This alignment ensures that distributions from the ETF flow through to MINI holders via the trust structure managed by the Trustee.

This pass-through arrangement means the timing of the MINI distribution depends directly on when the underlying ETF pays out, consistent with the administration of similar structured products.

Ex-Distribution Date of 1 July 2026 and Its Impact on HNDJOA and HNDJOB Investors

The HNDQ CitiFirst Instalment MINIs began trading ex-distribution on 1 July 2026, coinciding with the ex-distribution date of the Betashares Nasdaq 100 Currency Hedged ETF. Buyers of HNDJOA and HNDJOB from this date forward are not entitled to the declared distribution. Only investors holding the MINIs before this date and registered as of 2 July 2026 will qualify.

For active traders, the ex-distribution date is crucial: transactions settling on or after 1 July 2026 do not confer distribution rights. Eligible investors will receive payment on or about 16 July 2026.

Expected Payment Date of 16 July 2026 Dependent on Underlying ETF Distribution Receipt

The company update states that the Trustee will facilitate payment of the distribution to eligible holders on or around 16 July 2026, contingent upon receiving the distribution from the underlying Betashares Nasdaq 100 Currency Hedged ETF. The phrase "as reasonably practicable" indicates that while 16 July 2026 is the targeted payment date, it depends on timely receipt of funds.

Investors should consider this timing dependency and watch for further communications from Citigroup Global Markets Australia regarding payment confirmation.

Understanding CitiFirst Instalment MINIs and the HNDQ Product Structure

CitiFirst Instalment MINIs are exchange-traded structured products issued by Citigroup Global Markets Australia Pty Limited, designed to offer leveraged or instalment-based exposure to an underlying asset—in this case, the Betashares Nasdaq 100 Currency Hedged ETF. These products enable investors to pay for the asset in instalments while receiving economic benefits, including distributions, similar to direct ETF holders.

The HNDQ series specifically references the Betashares Nasdaq 100 Currency Hedged ETF, which provides exposure to the Nasdaq-100 index with currency hedging to mitigate AUD/USD exchange rate fluctuations for Australian investors. The declared unfranked distribution of AUD 1.20164574 per unit is a significant component of total returns for holders of HNDJOA and HNDJOB.

Citigroup Global Markets Australia’s Role and Trust Structure in Distribution Payments

Citigroup Global Markets Australia Pty Limited holds an Australian Financial Services Licence (AFSL 240992) and participates in the ASX Group and Cboe Australia. As issuer of the HNDQ CitiFirst Instalment MINIs, Citigroup manages the product lifecycle, including distribution declarations and payments to registered holders.

The Trustee administers the distribution process, ensuring funds received from the Betashares Nasdaq 100 Currency Hedged ETF are passed through to eligible MINI holders. This trust structure is standard for instalment MINIs and highlights the layered nature of these instruments affecting timing and certainty of income payments.

Tax Considerations of the Unfranked AUD 1.20164574 Distribution

The declared distribution is unfranked, meaning Australian resident investors will receive no franking credits, and the full amount will be treated as assessable income without a tax offset. This reflects the underlying ETF’s income source from US-listed Nasdaq-100 companies, which are outside the Australian Dividend Imputation system.

Given the complexity of tax treatment for instalment MINI distributions, investors should seek independent tax advice tailored to their circumstances. The company update does not provide specific tax guidance.

Distribution Applies to Both HNDJOA and HNDJOB ASX Codes

The distribution announcement covers two ASX-listed codes: HNDJOA and HNDJOB, both part of the HNDQ CitiFirst Instalment MINIs series. Both share the same record date, ex-distribution date, and expected payment date outlined in the update. Structural differences between the two series, such as leverage ratio or loan-to-value settings, were not detailed in this announcement.

Holders should consult relevant product disclosure statements or term sheets for detailed information. The update confirms both series follow identical distribution mechanics for this event, ensuring consistency for investors.

Summary of Important Dates for HNDQ CitiFirst Instalment MINI Investors

The company update highlights three key dates: the ex-distribution date on 1 July 2026, when the MINIs began trading without distribution rights; the record date on 2 July 2026, determining entitlement to the AUD 1.20164574 unfranked distribution; and the expected payment date on 16 July 2026, when the Trustee plans to distribute payments to eligible holders.

These dates align with those of the Betashares Nasdaq 100 Currency Hedged ETF, reflecting the structural linkage. Investors uncertain about entitlement or payment timing should consult their broker or product documentation. The immediate share price impact on HNDJOA and HNDJOB was not disclosed, though ex-distribution pricing adjustments typically occur at market open on the ex-distribution date.

Post-Distribution Considerations for HNDQ Instalment MINI Holders

After the 2 July 2026 record date, investors should monitor their brokerage accounts and official communications from Citigroup Global Markets Australia to confirm receipt of the AUD 1.20164574 distribution around 16 July 2026. Any delays or changes will likely be announced via further ASX company updates.

Additionally, holders of HNDJOA and HNDJOB should continue following the Betashares Nasdaq 100 Currency Hedged ETF’s performance, as it drives capital and income returns for these products. Factors such as Nasdaq-100 Index movements, AUD/USD exchange rate fluctuations, and ETF distribution policy changes may affect future distributions. No forward guidance on future distribution amounts or frequency was provided in this update.