Angering bondholders on Sunday, Credit Suisse stated that 16 billion ($17.24 billion) Swiss francs of its Additional Tier 1 debt would be written down to zero, ordered by the Swiss regulator under a rescue merger with UBS.

The Swiss regulator, FINMA, mentioned that the decision would boost the bank’s capital, reflecting authorities’ wish to see private investors’ pain from Credit Suisse’s troubles. Chair Marlene Amstad said the firm stuck to the country’s “too-big-to-fail” banking agenda in decision-making.

It means AT1 bondholders won’t get anything while shareholders having priority for repayment in bankruptcy, will obtain $3.23 billion under the UBS deal. AT1 bonds are a form of junior debt that counts banks’ regulatory capital. They were created to transfer risks to investors and away from taxpayers if a bank witnesses trouble. Converted into equity, the bonds can be written down when a lender’s capital buffers are eroded a definite threshold afar.

On Sunday, Reuters reported Swiss authorities considered imposed losses on bondholders under the rescue deal. Ralph Hamers, UBS’ CEO, told analysts that FINMA decided to write down the AT1 bonds to zero so it wouldn’t create a Bank’s liability. Besides, Credit Suisse’s AT1 debt rallied amid reports that shareholders received something in a deal with UBS with the hopes that bondholders are protected.

The bonds had sunk into unhappy territory before the weekend amid deep concerns over the Swiss lender’s health. AT1s pay higher interest carrying high risk for investors than regular debt.

Before Sunday’s news, investors were apprehensive about the banks extending outstanding AT1 bonds to curb refinancing at worse terms amid higher interest rates.