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Heterotic string on the CHL orbifold of K3

We study ${\cal N}=2$ compactifications of heterotic string theory on the CHL orbifold $(K3\times T^2)/\mathbb{Z}_N$ with $N= 2, 3, 5, 7$. $\mathbb{Z}_N$ acts as an involution on $K3$ together with a shift of $1/N$ along one of the circles of $T^2$. These compactifications generalize the example of the heterotic string on $K3\times T^2$ studied in the context of dualities in ${\cal N}=2$ string theories. We evaluate the new supersymmetric index for these theories and show that their expansion can written in terms of the McKay-Thompson series associated with the $\mathbb{Z}_N$ involution embedded in the Mathieu group $M_{24}$. We then evaluate the difference in one-loop threshold corrections to the non-Abelian gauge couplings with Wilson lines and show that their moduli dependence is captured by Siegel modular forms related to dyon partition functions of ${\cal N}=4$ string theories.