(Reuters) - Luxury watch retailer Hengdeli Holdings (3389.HK) said it would raise HK$2.5 billion ($322 million) via convertible bonds.

HengdeliHoldings.com

The 5-year bonds, with an interest coupon of 2.5 percent a year, will be convertible into 504.8 million shares at HK$4.9524 each, a conversion premium of 30.5 percent over the 20 day VWAP of HK$3.7939 a share.

New shares to be issued from the convertible bonds would represent about 10.3 percent of the enlarged share capital of the company.

Hengdeli expects net proceeds of HK$2.446 billion from the deal. J.P. Morgan and Standard Chartered are the bookrunners.

In August, Hengdeli raised HK$1.04 billion by selling 300 million new shares at HK$3.48 each to fund network expansion.

($1=$HK7.77) (Reporting by Daisy Ku; Editing by Ken Wills)