AT&T Canada, a telecommunications provider, is considering unwinding some of its foreign exchange swaps as a way to raise about CAD100 million (USD157 million), because the exchange rate has moved in its favor, according to a company official in Toronto. "Right now we're taking a look at all our past currency swaps to see if there is any way they can be unwound so we can raise Canadian dollars," the official said. One of the options, to raise part of the cash, is to unwind a five-year swap it completed last year on a USD250 million fixed-rate note (DW, 3/27/00). This swap was put on when the spot rate was at CAD1.44 and that rate has now moved to CAD1.5760, according to the official. It would sell the original swap back to the counterparty and enter a new swap with the CAD1.5760 exchange rate. He declined comment on which counterparties it used for the first transaction. This would give it a profit of approximately CAD13 million, before costs. He declined to comment on exact figures.
