Asset manager and operator Keppel has signed an indefeasible right of use agreement with a global hyperscaler for the final available fibre pair on Bifrost's subsea cable system.
The deal brings the total estimated contract value for all five fibre pairs to $1.3 billion, the Singaporean company said on Monday.
Bifrost is a more than 20,000-kilometre subsea cable system linking Singapore to the US West Coast via Indonesia, adding over 240 terabits per second (Tbps) of trans-Pacific capacity for AI and cloud workloads.
Keppel's investment in the fibre pairs is held through a 40-60 joint venture with its private fund co-investors.
The five fibre pairs have been committed to customers including major telecommunications operators, leading hyperscalers and global technology companies, Keppel said.
The Bifrost project is expected to generate an internal rate of return of about 30 per cent for Keppel as well as its private fund investors, it added.
Keppel also said it is evaluating two new cable systems, one from Singapore to the Middle East with branches across South Asia, and the other from Singapore to Japan through the South China Sea with branches across ASEAN.
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Sonia Cheema)
