By Li Panpan

(JW Insights) Jun 21 -- Chinese EV startup Nio signed an agreement with CYVN Holdings, a firm backed by the Abu Dhabi government and focused on advanced and smart mobility, in which CYVN will invest $738.5 million in cash to subscribe shares of Nio, said the company in a statement on June 20.

Under the deal, Nio will issue about 85 million new Class A shares at $8.72 per share to CYVN Holdings.

CYVN has also entered into a deal with an affiliate of Tencent Holdings, under which it will pick up some shares of Nio.

Upon closing of both deals, CYVN will own 7% stake in Nio, the EV maker said, adding that the holding will entitle the investment firm to nominate one director to Nio's board.

Nio said it will pursue global business opportunities jointly with CYVN following the closing of the investment deal.

William Bin Li, founder, chairman, and CEO of Nio, said, “The strategic investments from CYVN Holdings demonstrate Nio’s unique values in the smart EV industry. The investment will further strengthen our balance sheet to power our continuous endeavors in accelerating business growth, driving technological innovations, and building long-term competitiveness.”

The EV maker's deliveries rose about 20% in the first quarter this year from 25,768 units than one year ago, according to Reuters.