[SINGAPORE] Keppel has signed a binding term sheet with a global telecommunications company to lease a fibre pair on the Bifrost Cable System for 25 years, it announced on Thursday (Jan 22).
Under the agreement, Keppel’s connectivity division will grant the telco an indefeasible right of use for the fibre pair.
The announcement does not specify which telco company it is.
The transaction involves the Bifrost Cable System, a trans-Pacific cable spanning more than 20,000 km that directly connects Singapore to the west coast of the US via Indonesia, the Java Sea and the Celebes Sea.
The system was declared “ready for service” in October 2025 and began carrying commercial traffic in December 2025.
Manjot Singh Mann, CEO of the connectivity division 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.”
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While the binding term sheet has been signed, detailed terms regarding operations and maintenance are still being finalised. The company expects to execute the definitive agreement in the second quarter of 2026.
The commercial agreement follows regulatory progress made last year. In January 2025, Keppel received approval from the US Federal Communications Commission to land the cable in the US.
The project was jointly developed by a consortium that includes Keppel, Edge Cable Holdings USA and Telekomunikasi Indonesia International.
Keppel stated that the transaction is not expected to have a material impact on its net tangible assets per share or earnings per share for the current financial year.
The company and its private funds are currently reviewing opportunities to develop additional cable systems, it said.
Shares of Keppel closed S$0.16 or 1.5 per cent higher at S$10.89 before the news.
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