MICROCAPITAL BRIEF: Omtrix Raises $35m for New Higher Education Finance Fund (HEFF), Loans to be Distributed via Microfinance Institutions

Omtrix, a Costa Rica-based fund manager and financial consulting firm, has announced the launch of the Higher Education Finance Fund (HEFF), a student loan financing fund to promote and finance higher education opportunities for low-income youth in Bolivia, the Dominican Republic, Guatemala, Honduras, Paraguay and Peru. HEFF will provide loans to microfinance institutions (MFIs) for on-lending to underprivileged youth seeking funding for higher education. Omtrix, which was responsible for the structuring and fundraising for HEFF, also will manage the fund.

So far USD 35 million has been committed to HEFF. Initial equity funding has been provided by US-based nonprofit Calvert Foundation, German development bank KfW Bankengruppe, investment fund Luxembourg Microfinance and Development Fund (LMDF), Norway-based investment company Norwegian Investment Fund for Developing Countries (Norfund) and development finance institution Swiss Investment Fund for Emerging Markets (SIFEM). Corporación Andina de Fomento (CAF), a multilateral financial institution headquartered in Venezuela, will also be providing equity funding. Debt funding is anticipated from the Deutsche Bank Foundation, an affiliate of the German bank; the Overseas Private Investment Corporation (OPIC), a development finance institution of the US government; and the Inter-American Development Bank’s Oportunidades para la Mayoria initiative.

By Kristha Abores, Research Associate

About Omtrix: Founded in 1995, Omtrix Incorporated is a privately owned financial consulting firm based in Costa Rica. Its services include developing and managing investment funds and technical assistance programs, appraising and supervising investments for multi- and bi-lateral development institutions, performing institutional diagnostic assessments and overseeing institutional strengthening programs. As of January 2012, Omtrix manages the Antares Equity Participation Fund, the Emergency Liquidity Facility and the Higher Education Financing Fund (HEFF). Financial information on Omtrix is not available.

Sources and Additional Resources:

[1] Press Release: “Omtrix Announces Launching of the Higher Education Finance Fund,” http://www.microfinancegateway.org/gm/document-1.9.56020/HEFF_Press_Rele…

MicroCapital.org article, June 29, 2010, “MICROCAPITAL BRIEF: The Inter-American Development Bank’s (IDB’s) Multilateral Investment Fund (MIF) to Provide $2m to Haitian Emergency Liquidity Program (HELP),” https://www.microcapital.org/microcapital-brief-the-inter-american-develo…

MicroCapital.org article, February 21, 2008, “PRESS RELEASE: Omtrix Announces Creation of the Risk Management Facility for Microfinance Institutions in Latin America and the Caribbean,” https://www.microcapital.org/press-release-omtrix-announces-creation-of-t…

MicroCapital Universe Profile: Omtrix, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Omtrix

MicroCapital Universe Profile: Calvert Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Calvert+Social+Investment+Foundation

MicroCapital Universe Profile: KfW Bankengruppe (KfW Bank Group), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfWBankengruppe+%28KfW+Bank+Group%29

MicroCapital Universe Profile: Norwegian Investment Fund for Developing Countries (Norfund), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Norwegian+Investment+Fund+for+Developing+Countries+%28Norfund%29

MicroCapital Universe Profile: Corporación Andina de Fomento (CAF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Corporaci%C3%B3n+Andina+de+Fomento+%28CAF%29

MicroCapital Universe Profile: Overseas Private Investment Corporation (OPIC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Overseas+Private+Investment+Corporation+%28OPIC%29

MicroCapital Universe Profile: Inter-American Development Bank (IDB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inter-American+Development+Bank+%28IDB%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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