Rights issue fees have long been a prickly issue for equity capital markets bankers. In a period of reduced revenues, and with the Office of Fair Trading investigating the cost of capital raising, the topic is particularly sensitive.

In this environment, Resolution, the investment vehicle of insurance entrepreneur Clive Cowdery, used an innovative rights issue structure to raise $3.4bn for its acquisition of Axa's life and pensions businesses in the UK, in a capital raising launched on June 24. The deal priced on August 6 and was led by RBC Capital Markets and Barclays Capital.