(Yicai Global) Sept. 6 -- Nio's stock price gained after the Chinese new energy vehicle maker said that it will issue USD200 million worth of convertible bonds to its Chief Executive Li Bin, as well as an affiliate of Tencent Holdings, in order to raise more money to burn through.

Nio's [NYSE: NIO] stock price rose 7.3 percent to USD2.95 yesterday.

Tencent and Li Bin will both subscribe to USD100 million of convertible notes, the Shanghai-based NEV firm said in a statement yesterday.

The notes are divided into two tranches. The first one bears no interest and it will mature in 360 days, requiring Nio to pay a premium of 2 percent on the principal. Fifteen days before maturity, subscribers may choose to convert the bonds into Nio's American Depositary Shares at a price of USD2.98 each.

The second tranche will mature in three years with no interest, and involve a 6 percent premium. Those notes can be converted into ADSs at a price of USD3.12 each after one year since issuance.

Editor: Emmi Laine