We propose a coarse-grained model of proteins that take into account solvent effects and apply it for simulating folding of a three-helix-bundle protein. The energy functional form, refined from our previous work (Takada et al., J Chem Phys 1999;110:11616-11629), tries to closely imitate real physico-chemical interactions. In particular, the hydrogen bond that depends on local dielectric constant, the helix capping effect, and side-chain entropic effects are included. With use of the model, we simulate folding of the GA module of an albumin binding domain, 1prb(7-53), finding most trajectories reach at the native topology within 1 micros. In the simulation, helices 1 and 3 are mostly formed earlier accompanied by non-specific collapse, while second helix is intrinsically less stable and is formed with the help of tertiary contacts at later stage. We compute an analog of the transition state ensemble and compare it with those of other three-helix-bundle proteins. The transition state of 1prb(7-53) includes a few specific tertiary contacts of C terminus of helix 3 with the loop region between helices 1 and 2. This resembles, but is not equivalent to, an early formed region of fragment B of staphylococcal protein A, but is quite different from the folding transient structures of a de novo designed three-helix-bundle peptide.