Keppel : Report Pursuant to Clause 16(r) of the Trust Deed Dated 12 December 2000

Keppel Corporation Limited Tel: (65) 62706666 (Co Reg No. 196800351N) Fax: (65) 64136354

1 HarbourFront Avenue

#18-01 Keppel Bay Tower Singapore 098632 www.kepcorp.com

19 July 2017

DBS Trustee Limited

12 Marina Boulevard, Level 44 Marina Bay Financial Centre Tower 3 Singapore 018982

Attn : Ms Jane Lim Puay Yuen IMs Yap Boon Lee

Singapore Exchange Securities Trading Limited 9 North Buona Vista

#01-19/20 The Metropolis Singapore 138588

Attn : Mr Richard Ooi Chongzheng Issuer Regulation

Dear Sir IMadam

REPORT PURSUANT TO CLAUSE 16(R) OF THE TRUST DEED DATED 12th DECEMBER 2000 BETWEEN KEPPEL CORPORATION LIMITED (THE "ISSUER") AND DBS TRUSTEE LIMITED (THE "TRUST DEED") IN RELATION TO THE ISSUE OF NOTES PURSUANT TO THE USD600 MILLION (UPSIZED TO USD3 BILLION PURSUANT TO THE LETTER FROM KEPPEL CORPORATION DATED 2ND JULY 2012) MULTl­

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CURRENCY MEDIUM TERM NOTE PROGRAMME (THE "NOTES") FOR THE PERIOD OF APRIL 1512017 TO JUNE 3012017 (THE "PERIOD")

With reference to the captioned issue, and on behalf of the Board of Directors of the Issuer, I hereby report that:-

1. the limitations on the amount that the Issuer may borrow as provided in the Trust Deed have not been exceeded;

2. the Issuer has observed and performed all the covenants and obligations binding upon it by or pursuant to the Trust Deed or the Notes;

3. no Event of Default or Potential Event of Default has occurred;

4. no material trading or capital loss has been sustained by the Issuer and its subsidiaries (the "Group");

5. no circumstances materially affecting the Group have occurred which adversely affect the Notes;

6. no contingent liabilities have been incurred by the Issuer during this reporting period except for the following bank guarantees issued:

   Amount On behalf of

7. SGD 100,000.00 Keppel FELS

   No contingent liabilities which have maturedor is likely to mature within the succeeding 12 months whichwill materially affect theIssuer in its ability to repay the Notes.

8. there has been no change in any accounting method or methods of valuation of assets or liabilities of the Group other than those prescribed by changes in accounting standard;

9. no circumstances have arisen which render adherence to the existing method of valuation of assets or liabilities of the Issuer and/or the Group misleading or inappropriate; and

10. no substantial change has taken place in the nature of business of the Issuer and/or the Group since the date of the Trust Deed.

11. However, the Issuer refers to its announcements made on 9 February 2015, 23 February 2016 ,29 April 2016, 5 May 2016, 24 July 2016, 3 August 2016 and 3 October 2016 in relation to allegations in Brazil that illegal payments were made by Mr Zwi Skornicki in connection with contracts entered into between certain Keppel entities with Petrobras and/or Sete Brasil. As mentioned in its announcement dated 3 October 2016, following further internal investigations,the Issuer recognises that certain transactions associated with Mr. Skornicki may be suspicious .The Issuer has notified the authorities in the relevant jurisdict ions of its intention to cooperate and work towards the resolution of the underlying issues arising from or in connection with the transactions .

    Yours faithfully

    ?RATION LIMITED

    Lynn Koh

    General Manager, Group Treasury