Chinese EV Company Nio Receives US$ 738 Million From Abu Dhabi Fund
Posted on 06/21/2023
CYVN Holdings L.L.C. is an investment vehicle that is majority owned by the Abu Dhabi government. CYVN is focused on sustainable transportation and mobility. It has spent US$ 738.5 million on an investment in Nio Inc., a smart electric vehicle company and will receive 84,695,543 newly issued Class A ordinary shares.
Closing is expected in the coming weeks. The share issuance is a private placement. CYVN will hold the shares for at least six months from the date of closing. CYVN is also purchasing a stake from a subsidiary of Tencent, acquiring another 40,137,614 Class A ordinary shares for total ownership of 7% of the company. CYVN may appoint a director to the board.
William Bin Li, founder, Chairman and CEO of Nio said: “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. 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.”
Jassem Al Zaabi, Chairman and Managing Director of CYVN Holdings commented: “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. 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.”
Nio had deliveries of 31,041 in the first quarter of 2023, consisting of 10,430 premium smart electric SUVs and 20,611 premium smart electric sedans, representing an increase of 20.5% from the first quarter of 2022, and a decrease of 22.5% from the fourth quarter of 2022. Nio reported a net loss of US$ 690.1 million in Q1 2023.
