Snoras spokesman Tomas Vaišvila confirmed this to BNS.
The bond issue carries an annual interest rate of 1 percent and matures in August 2014.
Vytautas Plunksnis, the chairman of the board of the Lithuanian Investors' Association, described Snoras' decision to buy the bond issue as "logical", given that the bank has free funds, which it needs to invest.
The Finance Ministry said that it will use the proceeds to finance the budget deficit and to repay domestic and foreign debt.
Snoras was nationalized in late 2011 and is currently undergoing liquidation.
