NIO secures about $1.1 billion investment from Abu Dhabi state-owned fund

Chinese EV maker NIO has recently signed a share subscription agreement with CYVN Holdings, an Abu Dhabi government majority-owned investment firm, which will invest a total of about US $738.5 million through additional new shares and transfer of existing subscriptions. 

Given that the official purchase price of NIO's newly issued Class A ordinary shares is $8.72 per share, media reports predict that the transaction value of the secondary share transfer would be about $350 million, which means the CYVN Holdings' cumulative investment on NIO is calculated as $1.089 billion, according to CnEVPost.

CYVN Holdings is an investment vehicle that strategically focusses on advanced and smart mobility, and is said to be committed to partner with global companies in this regard. 

"The strategic investments from CYVN Holdings demonstrate NIO's unique values in the smart electric vehicle industry. The Investment Transaction will further strengthen our balance sheet to power our continuous endeavors in accelerating business growth, driving technological innovations and building long-term competitiveness," said William Bin Li, founder, chairman and chief executive officer of NIO.

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"In addition, we are excited about the prospect of partnering with CYVN Holdings to expand our international business. With the vision of Blue Sky Coming, we will continue to strive for technological breakthroughs and user experiences beyond expectations, contributing to a more sustainable future for the globe", Li added. 

Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings, commented on the latest investment, "Our strategic investments in NIO are driven by our appreciation of its leading brand, innovative and premium products, and proven technological capabilities in the smart electric vehicle market". 

He further added, "We are excited to develop strategic partnerships with NIO, and are fully committed to providing strategic value that will support NIO's international business growth. We will join hands with NIO to drive the global energy transition and sustainable growth for the whole humanity."

It is to be noted that the latest investment comes as a big relief for NIO as the automaker's stocks were declining for over two years in a row. The brand has also announced the switch of its entire model range to the new NT 2.0 EV platform, which is requiring huge investments given the company's expansion plans for global markets.