MICROCAPITAL BRIEF: Omtrix’s Higher Education Finance Fund (HEFF) Provides $3m Loan to Fundacion Genesis Empresial of Guatemala

Omtrix Incorporated, a privately owned fund management consulting firm based in Costa Rica, recently announced the first disbursement from its Higher Education Finance Fund (HEFF), which will go to Fundacion Genesis Empresarial, a Guatemalan microfinance institution (MFI). The MFI will receive a USD 3 million, nine-year loan with a four-year grace period. HEFF is comprised of a USD 34 million fund as well as a donor-funded technical assistance facility. The program offers funding and training to MFIs that wish to provide student loans to low-income students seeking tertiary education.

Investors in HEFF include the Andean Development Corporation (CAF in Spanish), a multilateral financial institution based in Venezuela; the Calvert Social Investment Foundation, a private US-based organization; and KfW Entwicklungsbank (KfW), a state-owned German development bank. Grant funding for the technical assistance program is provided by KfW; MasterCard Foundation, a Canada-based private foundation; and the United States Agency for International Development (USAID), a US government agency that provides economics and humanitarian assistance.

Omtrix also plans to implement the fund in Honduras, Bolivia, the Dominican Republic, Paraguay and Peru.

As of 2012, Omtrix manages the USD 5 million Antares Equity Participation Fund and the Emergency Liquidity Facility (ELF) which has disbursed approximately USD 36 million as of August 2012. As of 2011, Genesis

Empresarial reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 87 million, a gross loan portfolio of USD 84.3 million and approximately 157,000 borrowers.

By Charlotte Newman, Research Associate

About Omtrix
The Higher Education Finance Fund (HEFF), which is fund managed by Omtrix Incorporated, a privately owned fund management and consulting firm based in Costa Rica, holds assets of USD 34 million as of 2012. HEFF provides funding and training to microfinance institutions (MFIs) that wish to provide student loans to low-income students in Latin America to fund tertiary education. The fund was established in 2012, and its investors include the Andean Development Corporation (CAF in Spanish), the Calvert Social Investment Foundation, KfW Enwicklungsbank (KfW), MasterCard Foundation and the United States Agency for International Development (USAID).

About Higher Education Finance Fund
The Higher Education Finance Fund (HEFF) is a USD 34 million fund managed by Omtrix Incorporated, a privately owned fund management consulting firm based in Costa Rica. HEFF provides funding and training to microfinance institutions (MFIs) that wish to provide student loans to low-income students in Latin America seeking tertiary education. The fund was established in 2012 and its investors include the Andean Development Corporation (CAF in Spanish), the Calvert Social Investment Foundation, KfW Enwicklungsbank (KfW), MasterCard Foundation and the United States Agency for International Development (USAID).

About Fundacion Genesis Empresarial
Fundacion Genesis Empresarial is a Guatemalan nonprofit microfinance institution that provides financial and advisory services and training to micro- and small enterprises in Guatemala. As of 2011, Genesis Empresarial reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 87 million, a gross loan portfolio of USD 84.3 million, approximately 157,000 borrowers, return on equity (ROE) of 33.8 percent and return on assets (ROA) of 7.27 percent. The institution does not accept deposits.

Sources and Additional Resources:

Microfinance Gateway: “Press Release: Omtrix Announces the Launch of the Higher Education Finance Fund,” http://www.microfinancegateway.org/gm/document-1.9.58855/HEFF-%20G%C3%A9nesis%20Empresarial%20Press%20Release.pdf

MicroCapital.org story, January 6, 2012, “MICROCAPITAL BRIEF: Omtrix Raises $35m
for New Higher Education Finance Fund (HEFF), Loans to be Distributed via Microfinance Institutions,” https://www.microcapital.org/microcapital-brief-omtrix-raises-35m-for-new-higher-education-finance-fund-heff-loans-to-be-distributed-via-microfinance-institutions/

MicroCapital.org story, February 21, 2008, “MICROCAPITAL BRIEF: 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-the-risk-management-facility-for-microfinance-institutions-in-latin-america-and-the-caribbean/

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

MicroCapital Universe Profile: Higher Education Finance Fund
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?
page=Higher+Education+Finance+Fund+%28HEFF%29

MicroCapital Universe Profile: Fundacion Genesis Empresarial
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=genesis+empresarial

MicroCapital Universe Profile: Andean Development Corporation
http://microcapital.org/microfinanceuniverse/tiki-index.php?
page=Andean+Development+Corporation+%28CAF%29

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

MicroCapital Universe Profile: KfW Entwicklungsbank
http://microcapital.org/microfinanceuniverse/tiki-index.php?
page=KfW+Entwicklungsbank+%28KfW%29

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

MicroCapital Universe Profile: USAID
http://microcapital.org/microfinanceuniverse/tiki-index.php?
page=United+States+Agency+for+International+Development+%28USAID%29

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