Microfinance Focus, December 24, 2011: Omtrix, a Costa Rica based fund manager and financial consultancy firm has launched a $ 35 million High Education Finance Fund (HEFF) that will promote and finance higher education careers to underserved low income youth.

The fund will provide loans to a network of Microfinance Institutions (MFIs) in Bolivia, the Dominican Republic, Guatemala, Honduras, Paraguay and Peru which in turn will provide student loans to underprivileged youth seeking to fund their higher education.

Omtrix has been responsible for both the structuring and fundraising of the facility. Initial equity funding for the fund is provided by participants such as Calvert Foundation, KfW Bankengruppe, Luxembourg Microfinance and Development Fund, Norwegian Investment Fund for Developing Countries and the Swiss Investment Fund for Emerging Markets.

Through a parallel technical assistance facility, HEFF will introduce lending methodologies to microfinance institutions to help them effectively design and adapt the new product.