SINGAPORE, Jan 23, 2026, 15:08 SGT — regular session
- Keppel shares gained 1.1% in Singapore, staying close to their recent peak levels
- Company inked a 25-year term sheet to lease Bifrost subsea cable capacity to a global telecom operator
- Attention now turns to the full-year results on Feb 5 and the push for a definitive deal in Q2
Keppel Ltd shares climbed 1.1% to S$11.01 by 2:50 p.m. SGT on Friday, following the announcement of a 25-year contract linked to its Bifrost trans-Pacific subsea cable. The stock kicked off at S$11.00 and fluctuated between S$10.97 and S$11.06, with roughly 2.1 million shares traded.
This move is significant because long-term capacity leases offer investors a key advantage: contract visibility. Keppel has been pushing to boost recurring income through infrastructure-style assets, and Bifrost fits neatly into that strategy.
The timing is tricky. Keppel’s full-year results come out in early February, and investors have already been buying into the connectivity angle ahead of that.
Keppel announced it has inked a binding term sheet with an unnamed global telecom player, giving them an “indefeasible right of use” on a fibre pair in the Bifrost cable for 25 years—a long-term, usually irrevocable lease of network capacity. The firm said it’s still ironing out details, including operations and maintenance, aiming for a final deal by Q2 2026. It added it doesn’t expect any significant effect on this year’s net tangible assets per share or earnings per share. Keppel
Bifrost hit ready-for-service status in October 2025, then started handling commercial traffic by December, Keppel confirmed. The cable connects Singapore to the U.S. west coast through Indonesia, with landing spots in Guam and Grover Beach, California. It also has branching units reaching Jakarta, Manado, Davao, and Winema, Oregon.
Manjot Singh Mann, Keppel’s CEO for connectivity, noted the system has attracted “strong interest from global telcos and cloud players,” which has led to “improved pricing terms.”
Keppel backed its claim with figures. It said Bifrost delivers over 240 Tbps (terabits per second) in data capacity and boasts a round-trip latency—data traveling to the U.S. and back—of just shy of 165 milliseconds.
The company also reported that each fibre pair is handling roughly 20% more traffic capacity than anticipated. Keppel’s fibre pairs in Bifrost are held in a 40-60 joint venture with private fund co-investors, it added.
The jump on Friday pushes shares close to their 52-week high, per market data. Traders now watch closely: will more fibre pairs be leased before year-end, and at what rates?
There’s a catch, though. A binding term sheet isn’t the final contract, and Keppel hasn’t revealed the customer. Delays in closing the deal or weaker demand and pricing, as more trans-Pacific cables go live, could dull the impact.
All eyes will be on Feb 5, when Keppel is set to release its second-half and full-year 2025 results, followed by a webcast. Investors will be watching closely for updates on connectivity income and any progress on Bifrost monetisation.
