Keppel Ltd., through its Connectivity Division (Keppel), has signed a binding term sheet with a global telecommunications company that will see Keppel granting an Indefeasible Right of Use^[1] (IRU) of a fibre pair on the Bifrost Cable System (Bifrost) to the customer for 25 years. Detailed terms of the IRU, including operations and maintenance services, are being finalised by the parties, with execution of the definitive agreement targeted for 2Q 2026.

Having achieved Ready-for-Service in October 2025, Bifrost is the world’s first subsea cable system directly linking Singapore to the west coast of USA via Indonesia through the Java Sea and Celebes Sea. Bifrost lands in Singapore, Guam, and Grover Beach, California, with branching units extending connectivity to Jakarta and Manado in Indonesia, Davao in the Philippines, and Winema, Oregon in the USA, enabling dynamic traffic routing and robust regional interconnection.

Mr Manjot Singh Mann, CEO, Connectivity of Keppel, said, “Since the Bifrost’s completion, we have seen strong interest from global telcos and cloud players translating into improved pricing terms for this highly strategic asset. The signing of this binding term sheet marks a meaningful milestone as we continue our engagement on the remaining fibre pairs. As a critical subsea cable charting a new route across the Pacific, Bifrost underscores Keppel’s track record as a global asset manager and operator with the ability to originate, develop and operate future-ready infrastructure that not only supports the next phase of digital and AI-driven growth but also delivers strong returns to our investors.”

Spanning over 20,000 km, Bifrost is engineered to support AI workloads, cloud-native platforms, and real-time digital services, offering a round-trip latency of just under 165 milliseconds between Singapore and the USA—up to 10 milliseconds faster than many existing systems. By introducing more than 240 Tbps of additional capacity across the Pacific, Bifrost enhances the resilience of one of the world’s most active digital corridors.

Since commencing commercial traffic flow in December 2025, Bifrost has delivered strong performance with each fibre pair carrying approximately 20% more traffic capacity than originally anticipated.

Keppel’s fibre pairs in Bifrost are jointly owned by Keppel and its private fund co-investors through a 40-60 joint venture. 

Bifrost is part of Keppel's end-to-end connectivity ecosystem, spanning power, off-grid solutions, green energy, cooling, subsea cable connectivity and data centre solutions. Critical digital infrastructure such as Bifrost will not only boost the performance and reliability of Keppel's data centre offerings but also position the Company at the forefront of the digital economy.

Beyond Bifrost, Keppel, together with its private funds including Keppel Infrastructure Fund, are exploring opportunities to develop more cable systems connecting various geographies. These initiatives are part of Keppel's broader strategy to contribute to enhancing global connectivity and provide digital infrastructure solutions, leveraging its integrated ecosystem to meet the evolving needs of countries, businesses and consumers, and deliver the best risk-adjusted returns to investors.

The above-mentioned transaction is not expected to have any material impact on the net tangible asset per share or earnings per share of Keppel Ltd. for the current financial year.

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About Keppel

Keppel Ltd. (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity. Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts.

^[1] An Indefeasible Right of Use is a long-term, irrevocable contract in telecommunications, granting a customer exclusive and secure access to a portion of network capacity.