UniCredit SpA devalued its stake in Italian bank rescue fund Atlante by 80%.

The bank wrote down its €686 million stake in the fund by €547 million, Reuters reported March 29, citing a document on UniCredit's website. The move suggests that the lender has little confidence in regaining the money it invested in Atlante, the newswire noted.

Atlante, which was formed in April 2016 to help troubled Italian banks shore up capital and unload bad loans, received €4.25 billion in contributions from the country's leading banks and insurers. It injected a total of €3.4 billion into Banca Popolare di Vicenza SpA and Veneto Banca SpA after they failed to raise capital on their own.