Keppel Ltd. (BN4) announced on Jun, 17 2026 that its Connectivity Division has entered into an Indefeasible Right of Use agreement with an unnamed global technology leader for one of its fibre pairs on the Bifrost Cable System.

The contract secures the fourth of Keppel’s five fibre pairs on the 20,000-km Bifrost subsea network, which directly links Singapore with the west coast of the United States via Indonesia. The cable offers round-trip latency of under 165 milliseconds—up to 10 milliseconds faster than current routes—and provides more than 240 Tbps of new trans-Pacific capacity.

Keppel holds its interest in the fibre pairs through a 40:60 joint venture with private fund co-investors and will operate and maintain the assets, generating recurring income over 25 years. The company expects an internal rate of return of about 30% for the overall Bifrost project.

Keppel is also in advanced discussions to secure an IRU for its fifth and final fibre pair on Bifrost and says planning for its next cable system is progressing. The latest agreement is not expected to have a material impact on Keppel’s earnings per share or net tangible assets for the current financial year.