Poundworld has secured £50m from Santander to support its store expansion plan and a new 500,000 sq ft warehouse.

The value retailer, which also owns the Bargain Buys fascia, has about 300 stores and it plans to open “in excess” of 60 new stores a year. It is also investing in a new IT system and a 500,000 sq ft warehouse near its head office in Wakefield.

Santander Corporate and Commercial has provided the funding through a £50m debt package. Poundworld worked closely with Santander’s large corporate and structure finance team to put together the deal.

Last year Santander provided £26m to Poundworld for working capital and a trade import load to help buy stock, primarily for the Far East.

According to the retailer, the new deal will see facilities significantly increase in size and it secures a stable source of funding for the next five years.

Chris Edwards, co-founder of Poundworld, said: ”We have worked to build a recognised and respected brand and customer offering that provides savings to over two million Britons every week. Our ambition is to continue to introduce Poundworld’s value proposition to even more cities and towns across the UK.”

The deal follows TPG Capital’s acquisition of a majority stake in the business in May. The private equity firm immediately accelerated its store expansion plans.

Following two years of falling profits, Poundworld saw its pre-tax profits surge to £13.4m in the full year to March 31 2013, as turnover rose 22% to £422m.