(Adds Fitch rating, context, background on the ESM, EFSF)
By John Geddie
LONDON, Oct 8 (IFR) - The European Stability Mechanism (ESM)has appointed Deutsche Bank, RBS and SG CIB to arrange investormeetings across Europe in early November, bank sources said.
The roadshow will take place in London, Frankfurt and Paris,with sources saying the eurozone sovereign rescue fund willtarget its first bond offering for early January.
The ESM, which was officially inaugurated on Monday, hasalready met investors in Asia, sources said.
One source said the new entity is expected to have a highercredit rating than the temporary rescue vehicle, the EuropeanFinancial Stability Facility, and will therefore be easier tomarket to investors.
The EFSF is Triple A rated by Moody's and Fitch, but AA+from S&P. Fitch assigned the ESM a Triple A and stable rating onMonday citing "exceptionally strong mechanisms for exercisingcallable capital" and a "relatively high capitalisation ratio."
EFSF is a company established under Luxembourg law, whereasthe ESM is an intergovernmental institution established underinternational law with the 17 euro area member states as itsshareholders.
Within the next 15 days the ESM will receive EUR32bn ofpaid-in capital, with full subscription of EUR80bn by 2014. Italso has committed callable capital of EUR620bn, for a totalsubscribed capital of EUR700bn and an effective lending capacityof EUR500bn.
In contrast, the EFSF has a lending capacity of EUR440bn,based solely on guarantees from its Triple A rated shareholders.
(Reporting By John Geddie; editing by Alex Chambers, HeleneDurand, Julian Baker)