Deutsche Bank and the Green Climate Fund (GCF) have signed a deal to raise private capital for environmental action.

The Accreditation Master Agreement (AMA) will enable the bank to use GCF funds to mobilise private investment for climate change mitigation.

GCF has already approved the first funding proposal from Deutsche Bank, which combines capital from GCF and private investors to finance renewable electricity access for nearly half a million people and small businesses in Africa.

The original investment of $78.4 million (£60.5m) is expected to allow a total of $300 million (£231.5m) to be raised.

The proposal has been endorsed by Benin, Kenya, Namibia, Nigeria and Tanzania, which is where the programme will initially focus investments in the first three years.

GCF Executive Director Howard Bamsey, said: “This signature marks a milestone for GCF as it unlocks the broad international expertise of Deutsche Bank in directing private investment flows toward climate action.

“It follows from GCF’s recognition of the essential role of the private sector in filling climate finance gaps.”

A German stock exchange has joined a green finance initiative.