Filippo Alloatti, head of financials at Federated Hermes Limited, welcomed the decision to redeem the debt calling, saying "it helps Credit Suisse credit spreads to be perceived as a good corporate citizen".
Credit Suisse shares closed 2% higher on Friday following the news, while rival UBS' (UBSG.S) shares were down.
Credit Suisse also said that redeeming the outstanding instruments helped it to simplify its AT1 capital portfolio.
All its AT1 bonds will now be structured to be written off should capital fall below a certain threshold, as opposed to being converted into equity, as was case with the bond now being redeemed.
Some argue too that borrowing costs are likely to increase in coming months as central banks raise interest rates. read more
Finally, for the bank battered by a string of scandals and profit hits, (the new issuance) was an opportunity to send "a message to the market," one person familiar with the situation told Reuters.
"That Credit Suisse can raise an AT1 for size...and get investors buying Credit Suisse paper."