Keppel locks in $1.7b Bifrost windfall, lines up next cable bets

The group is also evaluating new subsea links after committing every fibre pair in the system.

Keppel Ltd. has secured commitments for all five fibre pairs in its Bifrost subsea cable system, completing a portfolio with an estimated contract value of $1.7b (US$1.3b) and paving the way for new regional cable projects.

The milestone follows an Indefeasible Right of Use (IRU) agreement with a leading global hyperscaler for the final remaining fibre pair. The estimated contract value includes cable operations and maintenance contracts over 25 years.

Keppel said the five fibre pairs have been committed to telecommunications operators, hyperscalers, and global technology companies.

It added the Bifrost project is expected to generate an internal rate of return of about 30% for Keppel and its private fund investors.

Building on the project, Keppel said it is evaluating two new subsea cable systems with one linking Singapore to the Middle East with branches across South Asia, and another connecting Singapore to Japan through the South China Sea with branches across ASEAN.

"The successful commercialisation of all five of Keppel's fibre pairs on Bifrost is a strong validation of our ability to originate, develop, operate, and crystalise value from proprietary digital infrastructure assets," said Manjot Singh Mann, CEO of Connectivity at Keppel.

Bifrost is the world's first subsea cable system to directly connect Singapore and the west coast of the United States via Indonesia through the Java Sea and Celebes Sea.

Spanning more than 20,000 kilometres, it provides over 240 terabits per second of trans-Pacific capacity and supports AI and cloud-native workloads, according to Keppel.

The company said its investment in the Bifrost fibre pairs is held through a 40:60 joint venture with private fund co-investors under its asset-light business model.

($1 = US$0.78)